www Katkar Corp. purchases and resells hardwood flooring. Unfortunately, on July 15, 2020 Katkar Corp. experienced a terrible fire and an unknown value of inventory was damaged. Using the information provided below and the gross profit method of inventory estimation, determine the value of the hardwood flooring inventory damaged in the fire. Must show ALL your work for marks. (10 marks) Inventory, July 1 Freight-in Purchases Gross profit rate Sales Purchase discounts Purchase returns $350,000 17,000 975,000 30% from previous year 1,900,000 15,000 60,000 Undamaged inventory at retail 22,000 value Part 2 If Katkar Corp.'s gross profit rate changed a lot from period to period, would you recommend using the gross profit method? Explain briefly. (2 marks)