Please help me.

Warmers Dress Shop had net retail sales of $250,000 during the current year. The following additional information was obtained from the companys accounting records:

	At Cost	At retail
Beginning inventory	$ 40,000	$ 60,000
Net purchases (excluding freight-in)	140,000	220,000
Freight-in	10,400

A.) Using the retail method, estimate the company's ending inventory at cost.

$ ___________

B.) Assume that a physical inventory taken at year end revealed an inventory on hand of $18,000 at retail value. What is the estimated amount of inventory shrinkage (loss due to theft, damage, etc.) at cost using the retail method?

$ _____________