Madrigal Electromotive uses the conventional retail inventory method to account for inventory. The following information relates to current-year operations: Cost Retail Beginning inventory and purchases $300,000 $460,000 Net markups 20,000 Net markdowns 30,000 Sales 390,000 What amount should be reported as ending inventory for the year? $56,250 $34,091 $37,500 $40,000