10) On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:

Beginning inventory, January 1: $5000

Net sales: $79,000

Net purchases: $77,000

The company's gross margin ratio is 20%. Using the gross profit method, the estimated ending inventory value would be: 10) ______

A) $18,800. B) $82,000. C) $15,800. D) $63,200. E) $15,400.