Question # $1$:

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