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Unformatted text preview: Sales $240,000 136,000 Gross profit 104,000 Operating expenses: Selling expenses ### $18,000 Gen.admin. expense 22,000 Total operating expenses 40,000 Income before taxes 64,000 Income taxes expense 21,760 Net income $42,240 Part C There are two product costs: Cost of goods sold and inventory. Both amounts are found as account balances above. Income statement: Balance sheet: Sales Current assets: Cost of goods sold $136,000 Inventory $17,560 Cost of goods sold m. Exp....
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