1) During the months of January, Pearson Corporation sold goods to customers. Assume Pearson uses a perpetual inventory system.. The sequence of events was as follows:

Date	Transaction
Jan.6	Sold goods for $1440 to Kate Inc. with terms 2/15, n/30. The goods cost Pearson $516.
Jan 10	Sold goods to Randall Corp for $1950 with terms 1/15, n/30. The goods cost Pearson $821.
Jan 19	Collected cash due from Kate Inc.

What is the gross profit from these transactions?

2) During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of events was as follows:

Jan.		6		Purchased goods for $1360 from Noah with terms 2/10, n/30.
		6		Purchased goods from Emma for $1070 with terms 2/10, n/30.
		14		Paid Emma in full.
		30		Paid Noah in full.

At the end of January, how will Ava's inventory increase by?