Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years, the companys gross profit rate has averaged 47%. The following information for the years first quarter is available from its records:

January 1 beginning inventory	$	400,000
Purchases		800,000
Purchase returns		15,000
Transportation-in		8,000
Sales		1,300,000
Sales returns		10,000

Insert you answer below and show your work. 5 points will be awarded for calculating Cost of goods available for sale and 5 points for calculating estimated ending inventory