On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,500 Net sales: $74,000 Net purchases: $72,000 The company's gross profit ratio is 25%. Using the gross profit method, the estimated ending inventory value would be: Multiple Choice $21,000. $18,500 $76,500 $55,500