Thuto Computers (Pty) Ltd has a store at the local shopping complex. Thuto Computers maintains a consistent gross profit percentage on turnover. The following information was taken from the trail balance for the reporting period ended 31 December 20.8: Cash sales 2 400 000 Credit sales 2 964 000 Cash purchases 1 900 000 Credit purchases 2 230 000 Inventories (1 January 20.8) 800 000 Inventories (31 December 20.8) 750 000 Returns (in) 164 000 Returns (out) 200 000 Sales expenses 150 000 Freight (in) 180 000 Freight (out) 160 000 On 27 June 20.9, the store was hit by a severe flood. The flood destroyed most of the inventory in the storeroom. The following information was taken from the trail balance for the period 1 January 20.9 up to the date of the flood: Net sales 3 125 000 Net purchases 2 178 880 Sales expenses 52 500 ADDITIONAL INFORMATION: 1. Personnel from the emergency services recovered inventories with no flood damage that was marked at an invoice selling price of R40 500. 2. During March 20.9, a sale was held and all goods were sold at 20% discount on the selling price. The total receipts during this sale amounted to R598 000 and is included in the sales figure of R3 125 000. 3. Thuto Computers (Pty) Ltd is registered for VAT purposes. VAT is calculated at 15%