Question $6$

Assume that Guardian Company uses a periodic inventory system and has $($in

thousands$)$:

Net Sales of $$850$; Beginning Inventory of $$45$; Goods Purchased of $$640$; Ending

Inventory of $$25$; and Operating Expenses of $$175.$ Determine the amounts to be

reported for: Cost of Goods Sold, Gross Profit, and Operating Income, respectively:

a$)$ $$660,$$$210,$$$35$

b$)$ $$660,$$$190,$$$15$

c$)$ $$640,$$$190,$$$15$

d$)$ $$680,$$$210,$$$35$