Use gross profit ratio to calculate inventory loss. On April 8, 2010, a flood destroyed the ware house of Stuco Distributing Co. From the waterlogged records of the company, management was able to determine that the firm’s gross profit ratio had averaged 35% for the past several years and that the inventory at the beginning of the year was $209,600. It also was determined that during the year until the date of the flood, sales had totaled $427,200 and purchases totaled $242,920.

Calculate the amount of inventory loss from the flood.