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On December 31, a company needed to estimate its ending inventory to prepare its annual financial statements. The following information is currently available: Inventory as

On December 31, a company needed to estimate its ending inventory to prepare its annual financial statements. The following information is currently available: Inventory as of January 1: $120,500 Net sales for the year: $400,000 Net purchases for the year: $270,500 This company typically achieves a gross profit ratio of 15%. What would be the value (balance) of ending Inventory under the gross profit method?

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