Friar Company discloses the following information for the year ended October 31, 2014:
Sales $355,000
Sales discounts 5,500
Sales returns 14,000
Merchandise inventory (beginning of period) 31,000
Invoice cost of merchandise purchases 1 78,000
Purchase discounts 3,600
Purchase returns and allowances 6,000
Cost of transportation-in 11,000
Gross profit from sales 142,000
Net income 65,000
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.