Instructions: Please show your work and circle your answers – either by hand (wi

Instructions:
Please show your work and circle your answers – either by hand (with pen/paper) then scan or take a photo of it to submit or and you can use a program like Excel or Word. If you show your work, I can give you partial credit for incorrect answers. Since question 1 and 2 are progressive, if you get 2a wrong, then 2b, c, d, e, and f will be wrong. That’s why it’s imperative for you to show your work. If you do, you will get partial credit for all parts.
Question # 1:
A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased. The ending inventory is $265,000 (at cost). Operating costs are $90,000.
a. Calculate the cost of goods sold
b. Calculate the net profit
Question # 2:
A retailer has a beginning monthly inventory valued at $60,000 at retail and $25,000 at cost. Net purchases during the month are $150,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following:
a. Total merchandise available for sale – at cost and at retail
b. Cost complement
c. Ending retail book value of inventory
d. Stock shortages
e. Adjusted ending retail book value
f. Gross profit
Question # 3:
A car dealer purchased multiple –disc CD players for $1195 each and desires a 40% markup (at retail). What retail price should be charged?