Given the following, calculate the estimated cost of ending inventory using the gross profit method:

Gross profit on sales	30%
Beginning inventory, January 1, 2017	$30,000.00
Net purchases	$8,000.00
Net sales at retail for January	$16,000.00

Complete this partial comparative balance sheet by vertical analysis. Round percents to the nearest hundredth.

Column1	Column2	Column3	Column4	Column5
	2016	2017
Assets	amount	percent	amount	percent
Current assets:
a. Cash	$38,000		$35,000
b. Accounts receivable	$19,000		$18,000
c.merchandise inventory	$16,000		$11,000
d. prepaid exoenses	$20,000		$16,000
.	.		.
.	.		.
.	.		.
total current assets	$180,000		$140,000