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: $5,600 Net sales: $85,000 Net purchases: $83,000 The company's gross margin ratio is 20%. Using the gross profit method, the estimated ending inventory value would be: Multiple Choice $17,000. $68,000. $88,600. $16,600. $20,600.