A. Total operating expenses

B. Cost of goods sold

C. Merchandise inventory (end of period)

D. Gross profit ratio

Calculate

Sales .................... $340,000

Sales Discounts ................ 5,500

Sales Returns ................. 14,000

Merchandise Inventory (beginning of period) ..... 30,000

Invoice cost of merchandise purchases ....... 175,000

Purchase discounts ............... 3,600

Purchase returns and allowances ........ 6,000

Cost of transportation in ............. 11,000

Gross profit from sales .............. 145,000

Net income ................... 65,000