1) Precision Musical Instruments, merchandisers of musical instruments, has provided the following details: 1 Mar. 5 Inventory purchased on account Mar. 8 Freight in Mar. 13 Purchase returns Mar. 14 Allowances by vendor Mar. 20 Payment made to vendor for purchases on March 5 $775,000 45,000 50,000 15,000 Credit terms are: 3/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used. A) $733,700 B) $710,000 C) $732,350 D) $760,000 4) From the following details, calculate operating income. Net Sales Revenue Cost of Goods Sold Operating Expenses Interest Revenue $420,000 260,000 80,000 7000 A) $80,000 B) $87,000 C) $160,000 D) $73,000