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Item 4

Quebec Traffic Company had a fire on March 10, 2020, that destroyed a major portion of its inventory. The salvaged accounting records contained the following information:

Sales, January 1 to March 10	$	320,600
Net merchandise purchased January 1 to March 10		152,400
Additional information was determined from the 2019 annual report:
Income statement:
Sales	$	3,230,000
Cost of goods sold		2,002,600
Balance sheet:
Merchandise inventory		264,100
Quebec Traffic was able to salvage inventory with a cost of $105,600.

Required: Determine the amount of inventory lost by Quebec Traffic as a result of the fire. Quebec Traffic has a December 31 year-end. (Round the "Gross profit ratio" to the nearest whole percent.)

amount of inventory cost---