$125,000. During the first 4 months of 2004, net purchases amounted to $475,000 and net sales were $500,000. On May 1, 2004, a fire destroyed the company's warehouse and its entire inventory. The average gross profit ratio in recent years had been 40%. What is the estimated amount of Shelton's inventory loss on May 1, 2004?
A.	$50,000
B.	$250,000
C.	$350,000
D.	$300,000
Answer:D
$125,000. During the first 4 months of 2004, net purchases amounted to $475,000 and net sales were $500,000. On May 1, 2004, a fire destroyed the company's warehouse and its entire inventory. The average gross profit ratio in recent years had been 40%. What is the estimated amount of Shelton's inventory loss on May 1, 2004?
A.	$50,000 B.	$250,000 C.	$350,000 D.	$300,000