On April 30th 2020, Layzee Co. needs to calculate its ending inventory for forecasting purposes. Instead of conducting a physical check, they utilize the gross profit method to estimate their ending inventory. The following information pertains to their inventory:

Beginning inventory : $20,000

Net purchases: $50,000

Net sales through April 30th: $80,000

Historical gross profit ratio: 50%

What is their estimated ending inventory?

20,000

None of the other options are correct.

10,000

30,000