I have the answe and the explanation but I would like to know, how to get 120% percentage number when solving the problem. Since the question says 20% but the solution say 120%

need explanation..

On May 2 a fire destroyed the entire merchandise Inventory on hand of Sanchez Wholesale Corporation. The following Information is available: Sales, January 1 through May 2 $ 360,000 d 80,000 Inventory, January 1 Merchandise purchases, January 1 through May 2 (Including $40,000 of goods in transit on May 2 shipped f.o.b. shipping point) Markup percentage on cost 330.000 20% What is the estimated Inventory on May 2 Immediately prior to the fire? Multiple Choice O 5 70.000 S 92000 $110.000 You $82,000 $110.000 d $122000 Explanation 90,000 Inventory. 111 5 Add: Purchases 330.000 Goods available for sale 410.000 300.000 Less Cost of goods sold (5360.000 - 120%) Estimated Inventory, 512 5110,000 Note: Although the estimated Inventory s $110.000 the estimated fire loss would be $70.000 DCSU5 of the $40.000 of goods in transit ne uded In inventory