Ralston lost all but $15,000 of its inventory in a flood. Some accounting records were recovered, but the inventory records were destroyed. Over the past two years, the company's income statement reported the following information: Net Sales Revenue Cost of Goods Sold Gross Profit Year 1 $200,000 140,000 60,000 Year 2 $220,000 154,000 66,000 The company has the following information available for the current year (Year 3) from its accounting records. Net Sales Revenue $250,000 Beginning Inventory 25,000 Net Purchases 330,000 Determine the estimated cost of the inventory lost in the flood. A. $165,000 B. $180,000 C. $175,000 D. $265,000 O E. $140,000