Najawanh Miles Com when preparing monthly financial statements required by its bank. Inventory on hand $122,500. pany uses the gross profit method to estimate ending inventory and cost of goods so at the end of July was The following ng information for the month of August was available from company records: Purchases Freight-in Sales Sales returns Purchases returns $220,000 5,000 350,000 9,000 5,000 in addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warchouses. Required: Show your wor correct: k neatly and clearly; otherwise credit will not be given, even if your ans August, assuming a gross profit ratio on sales of 259 Calculate the estimated inventory at the end of a. urw orkbelow otherwisecredit will motbegiven,even ify ouranswer iscorrect 5025 b. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%. Show your work below: otherwise credit will not be given, even if your answer is correct