1. Blackstone Buildings, Inc. had net sales of $645,000, cost of goods sold of $315,400, and payroll expense of $195,000. Compute the gross profit on sales.

a. $329,600b. $645,000c. $450,000d. $134,600

2. Blackstone Buildings, Inc. had net sales of $645,000; cost of goods sold of $315,400; total assets of $686,052; and total liabilities of $450,600. Compute the owners' equity.

a. $565,052b. $329,600c. $235,452d. $686,052