Tinishas Tees, Inc. is a retail company that sells green earth T-shirts. In 2009, Tinishas sold 68,000 T-shirts at a price of $18 per shirt. At the beginning of the fiscal year (on January 1, 2009), Tinishas had 8,500 T-shirts in inventory, valued at a cost of $12 per shirt. During the year, Tinishas purchased 66,500 T-shirts from their supplier at a cost of $12 per shirt. In 2009, Tinishas had operating expenses of $190,000, depreciation expense on $18,000, interest expense of $15,000, taxes of $65,000 and paid dividends of $25,000.

What did Tinishas Tees, Inc. report as net income (or net profit) for 2009? a. $115,000 b. $120,000 c. $125,000 d. $130,000 e. None of the answers listed above are within $1000 of the correct answer.

4. What did Tinishas Tees, Inc. report (in dollars) as the ending inventory on its 2009 balance sheet (i.e., inventory balance on December 31, 2009)? Use average cost valuation, not LIFO or FIFO. a. $66,000 b. $72,000 c. $78,000 d. $84,000 e. None of the answers listed above are within $1000 of the correct answer.

The correct answers are bolded, please provide in detail why they are correct.