Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The following historical data were taken from the 2016 and 2017 accounting records:

	2016			2017
Net sales	$	152,000		$	185,000
Cost of goods sold		67,900			80,380

At the end of the first quarter of 2018, Toylands ledger had the following account balances:

Sales	$	240,000
Purchases		159,000
Beginning inventory 1/1/2018		63,300
Ending inventory 3/31/2018		96,700

Based on purchases and sales, the Toyland accountant thinks inventory is low.

Required

Using the information provided, estimate the following for the first quarter of 2018:

a.	Cost of goods sold. (Use average cost of goods sold percentage.) (Round your intermediate percentage values to 2 decimal places and final answers to nearest whole dollar amount.)

b.	Ending inventory at March 31 based on the historical cost of goods sold percentage.

c.	Inventory shortage