On January 1, Escobar Supply's inventory account had a beginning balance of $6,800,000. Escobar engaged in the following transactions during the year.

On January 1, Escobar Supply's inventory account had a beginning balance of $6,800,000. Escobar engaged in the following transactions during the year: 1. Purchased merchandise inventory for $9,000,000. 2. Generated net sales of $27,000,000. 3. Reported gross profit for the year of $19,000,000 in its income statement. Required: a. At what amount was Cost of Goods Sold reported in the company's year-end income statement? b. At what amount was Merchandise Inventory reported in the company's year-end balance sheet