The Following Information Was Taken from the 20B Income Statement

Multiple Choice

The following information was taken from the 20B income statement of Milburn Company: Pretax profit, $12,000; Total operating expenses (not including income taxes) , $20,000; Sales revenue, $120,000; Beginning inventory, $8,000; and Purchases,
$90,000. Compute the amount of the ending inventory.

A) $18,000
B) $10,000
C) $88,000
D) $8,000