Between The Ears (BTE.com) is a popular Internet music store. During the current year, the company's cost of goods available for sale amounted to $461,000. The retail sales value of this merchandise amounted to $851000. Sales for the year were $743,000 At year-end, BTE.com takes a physical inventory. The general manager walks through the warehouse counting each type of product and reading its retail price into a recorder. From the recorded information, another employee prepares a schedule listing the entire ending Inventory at retail sales prices. The schedule prepared for the current year reports ending inventory at $38,148 at retail sales prices. Required: a. Using the retail method, estimate (1) the cost of goods sold during the year and (2) the inventory at the end of the year b-1. Use the cost ratio computed in port a to reduce the inventory counted by the general manager from its retall value to an estimate of its cost. b-2. Determine the estimated shrinkage losses (measured at cost) incurred by BTE.com during the year b-3. Compute BTE.com's gross profit for the year. (Include inventory shrinkage losses in the cost of goods sold) (1) Estimated cost of goods sold: Cost ratio for the current year: Cost of goods available for sale Retail prices of goods available for sale Cost ratio % Estimated cost of goods sold (2) Estimated ending inventory: Cost of goods available for sale Estimated cost of goods sold Estimated ending inventory Req A Req B1 Req B2 Req B3 Use the cost ratio computed in part a to reduce the inventory cc estimate of its cost. (Round "Cost ratio" to nearest whole percer Ending inventory at cost Req A Estimated shrinkage loss Gross profit