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 .