First Bank and Trust is considering giving Novotna Company a loan. Before doing so, they decide that further discussions with Novotna's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of \(\$ 295,000\). Discussions with the accountant reveal the following:

1. Novotna sold goods costing \(\$ 35,000\) to Moghul Company FOB shipping point on December 28. The goods are not expected to arrive in India until January 12. The goods were not included in the physical inventory because they were not in the warehouse.

2. The physical count of the inventory did not include goods costing \(\$ 95,000\) that were shipped to Novotna FOB destination on December 27 and were still in transit at yearend.

3. Novotna received goods costing \(\$ 25,000\) on January 2. The goods were shipped FOB shipping point on December 26 by Cellar Co. The goods were not included in the physical count.

4. Novotna sold goods costing \(\$ 40,000\) to Sterling of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Novotna's physical inventory.

5. Novotna received goods costing \(\$ 44,000\) on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of \(\$ 295,000\)
\section*{Instructions}
Determine the correct inventory amount on December 31.