Cottage Cup began the year with $$15,000$ of inventory. During the year, it purchased an additional $$75,000$ of inventory and earned $$120,000$ in sales revenue. At its year end, Cottage Cup had to count its inventory to determine that it had $$20,000$ of inventory on hand.

a$)$ Explain what kind of inventory system the company appears to be using.

b$)$ Determine the following:

$1.$ Cost of goods available for sale

$2.$ Cost of goods sold

c$)$ With regards to its inventory, what accounts $($and values$)$ will appear on their Income Statement and the Balance Sheet that are different from a service business?