Calculate Inventory For the wholesale division, Devin uses the dollar value LIFO method of inventory. The base year established for LIFO is 2014. The inventory at the end of 2014 was calculated as $1,040,500. For the next 3 years you have the following information:

	Ending inventory counted at cost	Price level increase from 2014	Net Purchases	Net Sales
2015	1,085,000	3%
2016	1,091,000	5%	$2,935,000	$5,456,000
2017	1,398,000	10 %

Required for the retail division:

1. Calculate the ending inventory to be reported on the balance sheet for each of the three years.

2. Calculate the cost of goods sold and the gross margin for 2016.