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	$686,000
Inventory, January 1	149,000
Purchases, January 1 through July 8	652,000
Gross profit ratio	28%

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

Multiple Choice

• $308,280.

• $182,560.

• $307,080.

• $493,920.