Portland Ltd What Is the Estimated Dollar Value of the Inventory at March

Multiple Choice

Portland Ltd. estimates the cost of its physical inventory at March 31 for use in its interim financial statements. The rate of markup on cost is 25%. The following account balances are available: $\begin{array}{ll}\text { Inventory, March } 1 & \$ 200,000 \\\text { Purchases } & 168,000 \\\text { Purchase returns } & 7,000 \\\text { Sales during March } & 350,000\end{array}$
What is the estimated dollar value of the inventory at March 31?

A) $18,000
B) $175,000
C) $81,000
D) $368,000