On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported beginning inventory of $227,150. Inventory purchased during April (until the date of the tornado) was $198,200. Sales for the month of April through April 24 were $642,900. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the tornado.

What is the correct answer?

Multiple Choice

• $103,900

• $217,550

• $157,988

• $321,450

• $212,675