The Blumer Company uses the periodic inventory system. On February 2, 2004, a fire destroys the entire inventory. The following information was found in accounting records stored in a different location from the fire-damaged store: Purchases, $90,000; Sales $160,000; beginning inventory, $30,000; average gross profit percentage during the past five years, 40%. Based on the above information, indicate whether the following statement is true or false. The estimated cost of goods sold is $120,000. True False