Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $$119,000.$ The following information for the month of August was available from company records:

Purchases $ $212,000$

Freight$-$in $4,500$

Sales $343,000$

Sales returns $8,300$

Purchases returns $3,600$

In addition, the controller is aware of $$12,000$ of inventory that was stolen during August from one of the company$$s warehouses.

Required:

Calculate the estimated inventory at the end of August, assuming a gross profit ratio of $25\%.$

Calculate the estimated inventory at the end of August, assuming a markup on cost of $25\%.$Henderson Company uses the gross profit method to estimate ending

inventory and cost of goods sold when preparing monthly financial

statements required by its bank. Inventory on hand at the end of July was

$$119,000.$ The following information for the month of August was available

from company records:

In addition, the controller is aware of $$12,000$ of inventory that was stolen

during August from one of the company's warehouses.

Required:

Calculate the estimated inventory at the end of August, assuming a

gross profit ratio of $25\%.$

Calculate the estimated inventory at the end of August, assuming a

markup on cost of $25\%.$

Estimated ending inventory

Estimated ending inventory