A retail company has goods available for sale of $210,000 at cost and $350,000 at retail price. It also had sales of $300,000 for the period. What is the estimated cost of ending inventory using the retail method?

		$35,000
		$30,000
		$50,000
		$170,000

A company has $75,000 (at cost) of goods available for sale. Sales are $80,000, and the gross profit (markup) rate is 30%. What is estimated cost of ending inventory, using the gross profit method?

		$19,000
		$42,000
		$24,000
		$51,000

An overstatement of ending inventory at the end of the year results in:

		no effect on net income for the current year.
		an understatement of net income for the following year.
		an understatement of net income for the current year.