The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail January 1 beginning inventory $ 471,850 $ 927,650 Cost of goods purchased 3,636,425 6,279,850 Sales 5,500,700 Sales returns 45,100 Required: 1. Use the retail inventory method to estimate the companys year-end inventory at cost. 2. A year-end physical inventory at retail prices yields a total inventory of $1,680,800. Prepare a calculation showing the companys loss from shrinkage at cost and at retail.

companys loss from shrinkage at cost and at retail. (Round your ratio calculations to 2 decimal places. (i.e. 10.15%))

ALASKA COMPANY
Inventory Shortage
December 31
	At Cost	At Retail
Estimated inventory
Physical inventory
Inventory shortage

	At Cost	Cost-to-Retail Ratio	At Retail
Beginning inventory
Cost of goods purchased
Cost of goods available for sale
Net sales at retail
Estimated ending inventory