At the beginning of the year, Downtown Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000.

At the beginning of the year, Downtown Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000. If Downtown Athletic reported ending inventory of $300,000 and sales of $1,050,000, their cost of goods sold and gross profit rate must be

Opening Inventory (1)Purchases (2)Ending Inventory (3)Sales (4)Cost of Goods sold (5)Gross Profit (6)=(4)-(5)Gross Profit rate (7)=(6)/(4) $200,000$800,000$300,000$1,050,000$700,000...