Friar Company discloses the following information for the year ended October 31, 2014:Sales $355,000Sales discounts 5,500Sales returns 14,000Merchandise inventory (beginning of period)...

Friar Company discloses the following information for the year ended October 31, 2014: Sales$355,000 Sales discounts 5,500 Sales returns14,000 Merchandise inventory (beginning of period)31,000 Invoice cost of merchandise purchases1 78,000 Purchase discounts3,600 Purchase returns and allowances 6,000 Cost of transportation-in11,000 Gross profit from sales142,000 Net income65,000 Required Calculate (a) total operating expenses, (b) cost of goods sold, (c) merchandise inventory (end of period), and (d) gross profit ratio (round to two decimal places). Analysis Component: Assuming that the gross profit ratio for the year ended October 31, 2013, was 47%, compare Friar Company’s performance from 2013 to 2014. View Solution:

Friar Company discloses the following information for the year ended