Jamestown Clothing Store has the following information available: eee ee a ee ee ee eee SD Cost Selling Price Other Purchases during mamnWanyr2 0035 smn meneettec tet wer stort $120,000 $170,000 Inventory balance Jamuany 1, 2003) ce semen reve eye eel 48,000 62,000 SHIES CITING WANE Ses e rab wooded and than ado oe ae 180,000 i Average gross margin rate for the last three years..... 25% 1. On the basis of this information, estimate the cost of inventory on hand at January 31, 2003, using the gross margin method. Round to the nearest whole percent. 2. How accurate do you think this method is?