Estimating Inventory Using Gross Profit Method Assume that we are auditing the records of Forde Corporation. A physical inventory has been taken by the company under our observation. The records of the company show the following account data. The gross profit last year was 25% of net sales; we anticipate that it will be 25% for the current year under audit. Required Estimate the cost of ending inventory using the gross profit method. - Note: Do not use negative signs with your answers