Problem
The Navarre Company had a fire on February 10, 2017, that destroyed a major portion of its inventory. The salvaged accounting records contained the following information:
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Sales, January 1 to February 10
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365,600
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Net merchandise purchased Jan. 1 to Feb. 10
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197,400
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Additional information was determined from the 2016 annual report:
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Income statement:
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Sales
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3,320,000
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Cost of goods sold
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1,726,400
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Balance sheet:
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Merchandise inventory
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309,100
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Navarre was able to salvage inventory with a cost of $106,500.
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Required:
Determine the amount of inventory lost by Navarre as a result of the fire. Navarre has a December 31 year-end. (Round "Gross profit ratio" to the nearest whole percent.)
How do I calculate the inventory lost? Pls show the calculation.