On January 1, 2024, Casselberry Retailers had inventory of $50,000. On December 31, 2024, total inventory on hand was $66,000. Casselberry reported the following account balances on December 31:

Instructions
a. Calculate Casselberry Retailers’ 2024 gross profit.
b. Calculate Casselberry Retailers’ 2024 operating expenses if profit for the year is $130,000 and there are no non-operating activities.

Transcribed Image Text:

Freight in Purchases Purchase returns and allowances Purchase discounts Sales Sales discounts Sales returns and allowances $ 4,000 509,000 2,000 6,000 840,000 5,000 10,000