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On April 8, 2013, a flood destroyed the warehouse of Stuco Distributing Co. From the waterlogged records of the company, management was able to determine that the firm's gross profit ratio had averaged 37% for the past several years and that the inventory at the beginning of the year was $55,500. It also was determined that during the year until the date of the flood, sales had totaled $109,700 and purchases totaled $63,510.
Required:
Calculate the amount of inventory loss from the flood.
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