On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:



Sales, January 1 through July 8 $ 697,000
Inventory, January 1 131,000
Purchases, January 1 through July 8 648,000
Gross profit ratio 20 %

What is the estimated inventory on July 8 immediately prior to the fire?

Multiple Choice

$221,400.


$557,600.


$129,600.


$222,600.