Gross Profit Method: Estimation of Theft Loss You are requested by a client on September 28 to prepare an insurance claim for a theft loss that occurred on that day. You immediately take an inventory and obtain the following data: Inventory, September 1 $38,000 Sales, September 1-September 28 $51,000 Purchases, September 1-September 28 19,000 The inventory on September 28 indicates that an inventory of $15,000 remains after the theft. During the past year, net sales were made at 50% above the cost of goods sold. Required: 1. Compute the inventory lost during the theft. Round the gross profit percentage to 3 decimal places. Beginning inventory 38,000 Purchases 19,000 Cost of goods available for sale 57,000 Cost of goods sold Ending inventory before theft $ Ending inventory after theft Inventory lost 2. What concerns might you have about the inventory estimation under the gross profit method? The input in the box below will not be graded, but may be reviewed and considered by your instructor