Retail Management 12th Edition by Barry Berman ,Joel Evans

Exercise 8

A retailer has yearly sales of $900,000. Inventory on January 1 is $360,000 (at cost). During the year, $660,000 of merchandise (at cost) is purchased. The ending inventory is $325,000 (at cost). Operating costs are $90,000. Calculate the cost of goods sold and net profit, and set up a profit-and-loss statement. There are no retail reductions in this problem.