2. Benson Company uses the periodic inventory system. Sales for 2013 were $470,000 while operating expenses were $175,000. Beginning and ending inventories for 2013 were $70,000 and $60,000, respectively. Net purchases were $180,000 while freight in was $15,000. The net income or loss for 2013 was:

A) $90,000 net income

B) $30,000 net income

C) $10,000 net income

D) $30,000 net loss

E) None of the above

3. Smith Company purchases $60,000 of inventory during the period and sells $18,000 of it for $30,000. Beginning of the period inventory was $3,000. What is the companys inventory balance to be reported on its balance sheet at year end?

A) $18,000

B) $ 2,000

C) $45,000

D) $ 3,000