Required information [The following information applies to the questions displayed below.] On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost Retail Cost Retail $ 93,000 $ 155,000 520,000 817,000 4,100 6,500 1,750 $ 502,000 2,500 6,000 $ 842,500 1,900 5,000 8,000 4,000 6,100 1.00 1.25 1.40 670,000 12,000 4,000 660,000 12,000 5,000