On March 15, Stark Company's inventory was destroyed by a tornado. The following was the only information salvaged: (1) Inventory, January 1: $31,000 (2) Purchases to Mar 15: $14,000 (3) Sales to Mar 15: $65,000 (4) Sales returns to Mar 15: $7,000 Stark's average gross profit ratio is 35%. What is the estimated value of the destroyed inventory?

Multiple Choice

• $10,52

• $45,000

• $8,500

• $9,250

• $7,300