For the year, FlabCo has a beginning inventory of $120,000 and net purchases of $70,000. A year-end physical count of inventory shows $110,000 in inventory. On FlabCos income statement, COGS is:

A.$190,000

B.$180,000

C.$80,000

D.$40,000

During ZipCos first year of operation, it purchases $125,000 of inventory on account. If ending inventory is $25,000, and sales are $150,000, what is ZipCos first-year gross profit?

A. $25,000

B. $50,000

C. $75,000

D. $100,000