Glenn Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of August was $135,000. The following information for the month of September was available from company records:

Purchases $227,000

Freight-in 6,800

Sales 380,000

Sales returns 19,000

Purchases returns 5,600

In addition, the company discovered that $12,000 of inventory was stolen during September from one of the company's warehouses.

Required:

Calculate the estimated inventory at the end of September, assuming a gross profit ratio of 25%.