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	$	692,000
Inventory, January 1		137,000
Purchases, January 1 through July 8		642,000
Gross profit ratio		25	%

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

Multiple Choice

$260,600.

$260,000.

$160,500.

$519,000.