At January 1, 2016, Barry, Inc. has beginning inventory of 5,000 widgets. Barry estimates it will sell 40,000 units during the first quarter of 2016 with a 5% increase in sales each quarter. Barrys policy is to maintain an ending inventory equal to 10% of the next quarters sales. Each widget costs $2 and is sold for $3. How much is the ending value of the budgeted inventory for the second quarter of 2016? Please show your work. The correct answer is 3,100