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Exercise 5-25 Calculating expenses and cost of goods sold-periodic LO7 Friar Company discloses the following information for the year ended October 31, 2020: Sales Sales
Exercise 5-25 Calculating expenses and cost of goods sold-periodic LO7 Friar Company discloses the following information for the year ended October 31, 2020: Sales Sales discounts Sales returns $364,000 6,400 14,900 Merchandise inventory (beginning of period) 31,900 Invoice cost of merchandise purchases 182,500 Purchase discounts 4,500 Purchase returns and allowances 6,900 Cost of transportation-in 11,900 Gross profit from sales Profit Required: a. Calculate the total operating expenses. Total operating expenses 143,800 65,900 b. Calculate the cost of goods sold. Cost of goods sold c. Calculate the merchandise Inventory (end of period). Merchandise inventory (ending) d. Calculate the gross profit ratio. (Round your final answer to 2 decimal places.) Gross profit ratio % Analysis Component: Assume the gross profit ratio for the year ended October 31, 2019, was 47%, Is the change in gross profit ratio in 2020 favourable or unfavourable? O Favourable O Unfavourable
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