In this problem you are provided with a "Trial Balance" as of March 31, 2018.

Notice: in the 3/31/18 Trial Balance there are details provided for the following:

Beginning Inventory: $75,000 (they show this was last year's ending at 12/31/17).

Purchases: $52,000 (for the first three months of 2018: 1/1/18 - 3/31/18)

Sales Revenue: $135,000 (for the first three months of 2018: 1/1/18 - 3/31/18)

Notice: You could use the above information for an analysis of relative sales method

Important: Updating March 31^st numbers is required to arrive at the fire loss.

Therefore, you must very closely read the additional information in items 2, 3 and 4 to update sales and purchases through April 15^th.

Also notice: a gross profit margin percentage must be estimated.

This can be accomplished using the information in item 5 as shown below:

Total Sales for two years.....................$920,000100%

Cost of Goods Sold see below........... (506,000) 55%

Gross Profit 2 years Overall$414,00045%

Beginning Inventory 1/1/16............. $66,000

Net Purchases 2 years......................515,000

Total Available..................................581,000

Less Ending Inventory 12/31/17....(75,000)

Cost of Goods Sold for 2 years....... $506,000