Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of January was $57,800. The following information for the month of February was available from company records:

Purchases of $120,000
Freight-in of $2,700
Sales of $180,000
Sales Returns of $ 4,400
Purchase Returns of $3,400
In addition, the controller is aware of $8,100 of inventory that was stolen during February from one of the company's warehouses.

Required:

Using the template below, calculate the estimated inventory at the end of February, assuming a gross profit ratio of 45%.

Beginning Inventory $57,800
Plus: Net purchases
Freight-in 2,700
Cost of Goods Available for Sale
Less: Cost of Goods Sold
Net Sales
Less Estimated Gross Profit
Estimated Cost of Goods Sold
Estimated Inventory before Theft
Less: Stolen Inventory 8,100
Estimated Ending Inventory