A tsunami destroyed Sugihara Company's warehouse and all of its inventory. Sugihara's prior-year balance sheet reported inventory of $2,853. Sugihara's management believes that last years gross profit percentage is a good estimate of the gross profit in the current year. Sugihara's sales last year were $50,500 and its cost of goods sold was $23,230. Before the tsunami, Sugihara's net sales were $23,000. Sugihara's purchased $20,195 of inventory. Of the inventory purchased, $701 had not yet been delivered to Sugihara.
Requirements Use the gross profit method to determine the following:

a. What is Sugihara's historical gross profit percentage?

b. What is Sugihara's estimated cost of goods sold?

c. What is Sugihara's estimated gross profit?

d. What is Sugihara's estimated ending inventory?