COVID Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $122,500. The following information for the month of August was available from company records: Purchases Freight-in Sales Sales returns Purchases returns $219,000 5,200 350,000 9,000 4,300 In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warehouses. Required: (SHOW YOUR WORKING. You can upload your working for this question via the provided link/button) 1. Calculate the estimated inventory at the end of August, assuming a gross profit ratio of 30% 2. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%. R 111 AN