12

Lee Company has the following account balances at the end of its fiscal year. Compute Net Sales, Gross Profit, and Net Income (ignore taxes). Sales $ 125,600 Sales Returns and Allowances 4,500 Sales Discounts 3,800 Net Sales Cost of Goods Sold 61,200 Gross Profit 12,300 Selling Expenses General and Administrative Expenses 10,500 Net Income 5