1. Freight Terms

Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

	Merchandise (Invoice Amount)		Freight Paid by Seller		Freight Terms		Returns and Allowances (Invoice Amount)
a.	$24,000		$300			FOB destination, 1/10, n/30	$2,000
b.	31,500		250			FOB shipping point, 2/10, n/30	2,500

a.	$
b.	$

2. Determining Cost of Goods Sold

For a recent year, Best Buy (BBY) reported sales of $39,528 million. Its gross profit was $9,191 million. What was the amount of Best Buy's cost of goods sold? (Enter answer in millions.) $ million

3) Analyze J. C. Penney

J. C. Penney Company, Inc. (JCP) is a large general merchandise retailer in the United States. The following data (in millions) were obtained from its financial statements for four recent years:

		Year 4	Year 3	Year 2	Year 1
Total sales		$12,547	$12,625	$12,257	$11,859
Total assets:
Beginning of year		9,442	10,404	11,801	9,781
End of year		9,314	9,442	10,404	11,801

a. Compute the asset turnover ratio for each year. Round to two decimal places.

		Year 1	Year 2	Year 3	Year 4
Asset turnover ratio