I understand the first two parts. I got lost from the estimated cost down.

In 2016, Sahara Company experienced a major casualty loss. The roof of its warehouse collapsed in an ice storm and destroyed its entire inventory. The company began the year with inventory of $1,000. It made purchases of $6,300 but returned $80 worth of merchandise. Sales prior to the ice storm were $10,500. Sahara must use the gross profit method to determine inventory on hand on the date of the casualty. Below is an excerpt of its income statement for the last three years. E: (Click the icon to view the data.) Read the requirements Requirement a. Assume that Sahara uses the most recent three years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? Begin by calculating the gross profit percentage for each of the last three years. (Round the gross profit percentage to one decimal place, X.X%.) 2013 2014 2015 Gross Profit Percentage 55.1 % 61.3 % 61.5 % Now determine the average gross profit percentage over the three year period. (Round the gross profit percentage to one decimal place, X.X%.) The average gross profit percentage over the three year period is 59.3 %. Identify the appropriate formula and then calculate Sahara's estimated cost of goods sold for 2016. (Round any interim percentage calculations to one decimal place, X.X%. Round the final estimated cost of goods sold amount that you enter into the table below to the nearest whole dollar.) Estimated cost of goods sold = Net sales x (1-Gross profit percentage) = $ 4,274 Identify the appropriate formula and then calculate Sahara's estimated gross profit for the current year. (Round any interim calculations and the final estimated gross profit amount that you enter into the table below to the nearest whole dollar.) Estimated gross profit = Sales - Estimated cost of goods sold = $ 6.226 Identify the appropriate formula and then calculate Sahara's estimated ending inventory (Round any interim calculations and the final estimated ending inventory amount that you enter into the table below to the nearest whole dollar.) Estimated ending inventory = Cost of goods available for sale - Estimated cost of goods sold = $ 2,946 Requirement b. Assume that Sahara uses the most recent two years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? First determine the average gross profit percentage over the two year period. (Round the gross profit percentage to one decimal place, X.X%.) 61.4 % A The average gross profit percentage over the two year period is Data Table amount that you enter into the table Calculate Sahara's estimated cost of goods sold for 2016 assuming the most recent two years of net sales and cost of goods sold to determine its historical gross profit. below to the nearest whole dollar.) 2013 2014 2015 Estimated cost of goods sold = $ 4.053 $ Calculate Sahara's estimated gross profit for the current year. (Round any interim calculations and the final estimated gross profit amount that you enter into the table bel Net Sales Cost of Goods Sold General and Administrative Expense Depreciation Expense Operating Income 4,000 $ 1,796 400 250 1,554 $ 6,000 $ 2,322 600 10,000 3,850 1,000 425 4,725 This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. 350 All parts showing $ 2,728 $ Similar Question In 2016, Sahara Company experienced a major casualty loss. The roof of its warehouse collapsed in an ice storm and destroyed its entire inventory. The company began the year with inventory of $1,000. It made purchases of $6,300 but returned $80 worth of merchandise. Sales prior to the ice storm were $10,500. Sahara must use the gross profit method to determine inventory on hand on the date of the casualty. Below is an excerpt of its income statement for the last three years. E: (Click the icon to view the data.) Read the requirements Requirement a. Assume that Sahara uses the most recent three years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? Begin by calculating the gross profit percentage for each of the last three years. (Round the gross profit percentage to one decimal place, X.X%.) 2013 2014 2015 Gross Profit Percentage 55.1 % 61.3 % 61.5 % Now determine the average gross profit percentage over the three year period. (Round the gross profit percentage to one decimal place, X.X%.) The average gross profit percentage over the three year period is 59.3 %. Identify the appropriate formula and then calculate Sahara's estimated cost of goods sold for 2016. (Round any interim percentage calculations to one decimal place, X.X%. Round the final estimated cost of goods sold amount that you enter into the table below to the nearest whole dollar.) Estimated cost of goods sold = Net sales x (1-Gross profit percentage) = $ 4,274 Identify the appropriate formula and then calculate Sahara's estimated gross profit for the current year. (Round any interim calculations and the final estimated gross profit amount that you enter into the table below to the nearest whole dollar.) Estimated gross profit = Sales - Estimated cost of goods sold = $ 6.226 Identify the appropriate formula and then calculate Sahara's estimated ending inventory (Round any interim calculations and the final estimated ending inventory amount that you enter into the table below to the nearest whole dollar.) Estimated ending inventory = Cost of goods available for sale - Estimated cost of goods sold = $ 2,946 Requirement b. Assume that Sahara uses the most recent two years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? First determine the average gross profit percentage over the two year period. (Round the gross profit percentage to one decimal place, X.X%.) 61.4 % A The average gross profit percentage over the two year period is Data Table amount that you enter into the table Calculate Sahara's estimated cost of goods sold for 2016 assuming the most recent two years of net sales and cost of goods sold to determine its historical gross profit. below to the nearest whole dollar.) 2013 2014 2015 Estimated cost of goods sold = $ 4.053 $ Calculate Sahara's estimated gross profit for the current year. (Round any interim calculations and the final estimated gross profit amount that you enter into the table bel Net Sales Cost of Goods Sold General and Administrative Expense Depreciation Expense Operating Income 4,000 $ 1,796 400 250 1,554 $ 6,000 $ 2,322 600 10,000 3,850 1,000 425 4,725 This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. 350 All parts showing $ 2,728 $ Similar