both questions

so6 Retail Method E13. Olivia's Dress Shop had net retail sales of $125,000 during the current year. The following additional information was obtained from the company's account- ing records: At Cost $20,000 70,000 At Retail S 30,000 110,000 Beginning inventory Net purchases (excluding freight-in) Freight-in 5,200 1. Using the retail method, estimate the company's ending inventory at cost. 2. Assume that a physical inventory taken at year end revealed an inventory on hand of $9,000 at retail value. What is the estimated amount of inven- tory shrinkage (loss due to theft, damage, etc.) at cost using the retail method? S06 Gross Profit Method E 14. Chen Mo-Wan was at home when he received a call from the fire department telling him his store had burned. His business was a total loss. The insurance company asked him to prove his inventory loss. For the year, until the date of the fire, Chen's company had sales of $900,000 and pur- chases of $560,000. Freight in amounted to $27,400, and beginning inven- tory was $90,000. Chen always priced 40 percent. Compute Chen's estimated inventory loss. his goods to achieve a gross margin of