$29,707.50 Adriana That's right! Mr. Johnson C3 How did this amount of money get calculated on this income statement? Mr. Johnson Revenue - COGS - Expenses - Net income before taxes Revenue - COGS - Expenses - Taxes Revenue + COGS - Expenses + Taxes GROSS SS Less: sales returns and discounts Net sales $ 1,800.00 $92.200.00 $ 34,000.00 $ 21,000.00 $ 1.400.00 Cost of goods sold Beginning inventory: Jan 1 Merchandise purchases Freight/shipping costs Net purchases Costs of goods available for sale Less: ending Inventory, Dec 31 Cost of goods sold $22.400.00 $56.400.00 $ 12,000.00 $ 44 400.00 Gross profit $ 47800.00 $ 7,500.00 $ 800.00 $ 1.200.00 Operating expenses Selling expenses Salaries Advertising Supplies Total selling expenses General expenses Depreciation Insurance Utilities Other Total general expenses $ 9,500.00 $ 1,200.00 $ 900.00 $ 1.100.00 $ 150.00 $ 3.850.00 Total operating expenses Net Income before taxes LOSS taxes Net income after taxes $ 12,850.00 $ 34,950.00 $ 5242150 $29.707.50