Cates Company incurred \(\$ 42,000\) of operating expenses in June, a month in which its sales were \(\$ 150,000\). The company began June with a \(\$ 78,000\) merchandise inventory and ended the month with an \(\$ 84,000\) inventory. During the month, it purchased merchandise having a \(\$ 96,000\) invoice price, all of which was subject to a \(2 \%\) discount for prompt payment. The company took advantage of the discounts on \(\$ 66,000\) of the purchases; but through an error in filing it did not earn and could not take the discount on a \(\$ 30,000\) invoice paid on June 30.

\section*{Required}
1. Prepare a June income statement for the company under the assumption that it records invoices at gross amounts.
2. Prepare a second income statement for the company under the assumption that it records invoices at net amounts.