Inventory shortage if the inventory balance as of march 31

Question

Bill Money, owner of Money Company, is reviewing the quarterly financial statements and thinks the cost of goods sold is out of line with past years. The following historical data is available for 2013 and 2014:

At the end of the first quarter of 2014, Money Company's ledger had the following account balances:

Sales .................$280,000
Purchases ...............$210,000
Beginning inventory, January 1, 2013 ....$70,000

Required: 

Using the information provided, estimate the following for the first quarter of 2015:

a. Cost of goods sold. (Use average cost of goods sold percentage.) 
b. Ending inventory at March 31 based on the historical cost of goods sold percentage. 
c. Inventory shortage if the inventory balance as of March 31 is$125,000.