PB7-7 (Supplement B) Estimating Inventory Using the Gross Profit Method Greeley & Morgan, LLP uses the gross profit method to estimate cost of goods sold and ending inventory for its quarterly financial statements. Last year, net sales were $328,125 and cost of goods sold were $210,000. Its accounting records for the current quarter contained the following information: Beginning inventory $ 9,000 Purchases 52,000 Net sales 85,000 Required: 1. Compute the gross profit percentage for last year. 2. Estimate cost of goods sold for the quarter and ending inventory at quarter-end using the gross profit method.