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A retailer has yearly sales of $ 6 5 0 , 0 0 0 . Inventory on January 1 is $ 2 6 0 ,

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

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