872,00 0
Cost of goods sold 555,00 0
Gross profit 317,00 0
Operating expenses
Selling expenses 109,00 0
Administrative expenses 103,00 0
212,00 0
Net earnings $ 105,0 00
As an experienced, knowledgeable accountant, you review the statement and determine the following facts:
1. Net sales consist of: sales $ 911,000, less freight-out on merchandise sold $ 33,000, and sales returns and allowances $ 28,000.