Boots R Us produces a variety of products for the fashion industry. Cowboy-type boots are among its most popular products. The companys controller spoke to the companys president at a meeting last week and told her that the company was doing well, but that the financial picture depended on how product costs and net operating income were calculated. The president did not realize that the company had options with regard to calculating these numbers, so she asked the controller to prepare some information and be ready to meet with her to talk more about this issue. In preparing for the meeting, the controller accumulated the following data: