The home office of Figueroa Company ships merchandise to the Nine-Zero Branch at a billed price that includes a markup on home office cost of 25%. The Inventories ledger account of the branch, under the perpetual inventory system, showed a December 31, 2004, debit balance, $120,000; a debit for a shipment received January 16, 2005, $500,000; total credits for goods sold during January 2005, $520,000; and a January 31, 2005, debit balance,

$100,000 (all amounts are home office billed prices).

Prepare a working paper for the home office of Figueroa Company to analyze the flow of merchandise to Nine-Zero Branch during January 2005.