Estimating ending inventory by the gross profit method Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following: Beginning inventory $ 220,000 Net purchases 800,000 Net sales 1,100,000 Gross profit rate 45% Suppose this inventory, stored in the United States, was lost in a fire. Requirement 1. Estimate the amount of the loss to Deluxe Auto Parts. Use the gross profit method.