PC Connection is a mail-order retailer of personla computers. A recent financial report issued by the company revealed the following information.

Understanding Inventory Cash Flow

Merchandise invetory (beginning of the year)	$79 million
Merchandise inventory (end of the year)	$91 million
Net sales for the year	$2.46 billion
Gross profit margin	13%

a.) Compute the company's cost of goods sold for the year. b.) Approximately how much inventory did PC Connection purchase during the year? c.)What facors might contribute to the company's low gross profit margin? d.) Discuss reasons why PC Connection uses a perpetual inventory system.