Answer:
$ $
Sales Revenue 2,399,000
Less:
Sales return and allowances 43,000
Sales discount <u> 8,600</u>
<u> 2,347,400</u>
Net sales
Cost of goods sold <u> 1,084,000</u>
Gross profit 1,263,400
Operating expenses;
Advertising expense 54,000
Depreciation expense 124,000
Freight out 24,000
Insurance expense 15,000
Salaries and wages expense <u> 674,000</u>
Total operating expense <u> 891,000</u>
Income from operation 372,400
Other revenue and gains
Interest revenue 32,000
Rent revenue <u> 24,000 </u>
56,000
Other expenses and loss
Interest expense <u> 69,000</u>
Income before income taxes 359,400
Income tax expense <u> 69,000</u>
Net income 290,400
