Aussie Mac’s accounting records show the following at year-end: freight-in \($6100;\) sales \($240\) 000; purchases \($162\) 500; beginning inventory \($18\) 000; ending inventory \($20\) 000; sales returns and allowances\($10\) 000; purchase returns \($8600;\) and operating expenses \($57\) 000. Calculate these amounts for Aussie Mac:

(a) Net sales.

(b) Cost of goods purchased.

(c) Cost of sales.

(d) Gross profit.

(e) Profit before tax.
Reasoning To calculate the required amounts, it is important to know the relationships in measuring profit for a merchandising business. For example, it is necessary to know the difference between sales and net sales, goods available for sale and cost of sales, and gross profit and profit.