national retail stores has identified the following data from its accounting records 592052

National Retail Stores has identified the following data from its accounting records for the year ended December 31: Sales, $1,100,000; purchases, $650,000; and general and administrative expenses, $275,000. It had an opening inventory of $150,000 and a closing inventory of $200,000. Based on this information, the gross profit and operating profit/loss is

1. A gross profit of $450,000 and an operating profit of $185,000
2. A gross profit of $500,000 and an operating profit of $225,000
3. A gross profit of $400,000 and an operating profit of $125,000
4. A gross profit of $500,000 and an operating loss of $185,000