On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:

Sales, January 1 through July 8	$	700,000
Inventory, January 1		132,000
Purchases, January 1 through July 8		642,000
Gross profit ratio		22	%

What is the estimated inventory on July 8 immediately prior to the fire?

Multiple Choice

• $141,240.

• $546,000.

• $229,200.

• $228,000.