Problem 3 Drake Corp. is preparing the financial statements at its fiscal year end, January 31, 20x8. The following information is available: At Cost At Retail Inventory, February 1, 20x7.... $ 71,400 $ 103,400 Markdowns. 47,000 Markups ............................. 71,000 Markdown cancellations 22,000 Markup cancellations ....... 9,000 Purchases .................. 231,200 274,300 Sales ...................................... 329,000 Purchases returns and allowances. 5,200 6,700 Sales returns and allowances .... 9,000 Required - Calculate the ending inventory at cost at January 31, 20x8, using the retail method that approximates lower of average cost and market. Your solution should be in good form with amounts clearly labelled. Carry the cost ratio to two decimals, e.g., 12.34%