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: $5,700 Net sales: $86,000 Net purchases: $84,000 The company's gross profit ratio is 25%. Using the gross profit method, the estimated ending inventory value would be: Multiple Choice $21,500. $21,000. $64,500. $25,200. $89,700.