Lily Company needs to determine the amount of inventory in its warehouse at the time that an earthquake destroyed it. Lily's gross profit percentage averaged 27% over the last three years. Lily began...

Extracted text: Lily Company needs to determine the amount of inventory in its warehouse at the time that an earthquake destroyed it. Lily's gross profit percentage averaged 27% over the last three years. Lily began the current year with inventory of $840,000. Its net purchases were $4,387,000 and net sales were $3,970,000 during the year before the earthquake occurred. Use the gross profit method to estimate the inventory on hand on the date of the earthquake. Identify the appropriate formula and then calculate Lily's estimated ending inventory. Estimated ending inventory !!