Answer:
Sales Revenue 825,000
Cost of goods sold 495,000
Gross profit 330,000
Operating expenses 200,000
Step-by-step explanation:
Freight-in $ 4,000
Purchases 509,000
Purchase discounts (6,000)
Purchase returns and allowances (2,000)
Net purchases: 505,000
Beginning Inventory 50,000
Available for sale 555,000
Ending Inventory (60,000)
COGS 495,000
Sales revenue 840,000
Sales discounts (5,000)
Sales returns and allowances (10,000)
Net Sales 825,000
Gross Profit: 825,000 - 495,000 = 330,000
Net Income : Gross profit - operating expenses + non-operating income
As non-operating income is stated to be zero then:
130,000 = 330,000 - operating expenses
op. expenses = 330,000 - 130,000 = 200,000