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On March 31 a company needed to estimate its ending inventory to prepare its first quarter...

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: $4,000
Net sales: $80,000
Net purchases: $78,000

The company's gross margin ratio is 25%. Using the gross profit method, the estimated ending inventory value would be:

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