Howard Company, a camera store, lost some inventory in a fire on March 15. To file an insurance claim, the company must estimate its March 15 inventory using the gross profit method. For the past two years, Howard Company's gross profit has averaged 40% of net sales. Its inventory records reveal the following data: (Click the icon to view the data.) Read the requirements. Data table Requirement 1. Estimate the cost of the lost inventory using the gross profit method. Inventory, March 1 $ 57,800 Add: Transactions March 1-15: Less: Purchases Purchases discounts Net purchases Purchase returns Sales 490,100 15,000 70,600 647,000 Estimated cost of goods sold: Less: Estimated cost of goods sold. Estimated cost of ending inventory lost Print Done Requirement 2. Prepare the income statement for March 1 to March 15 for this product through gross profit. Show the detailed computations of cost of goods sold in a separate schedule. Begin by showing the detailed computations of cost of goods sold. Add: Less: Less: Cost of goods sold Now prepare the March income statement for this product through gross profit. Howard Company Income Statement (partial) Period Ending March 15 (date of the Fire) Gross profit Requirements 1. Estimate the cost of the lost inventory using the gross profit method. 2. Prepare the income statement for March 1 to March 15 for this product through gross profit. Show the detailed computations of cost of goods sold in a separate schedule. Print Done