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Accounts from the Perril Company's Income Statement, including some accounts and from the Perril Company's Balance Sheet, for the year ending December 31, 2021 are

Accounts from the Perril Company's Income Statement, including some accounts and from the Perril Company's Balance Sheet, for the year ending December 31, 2021 are listed below:

 • Additional paid in capital = $1,920

• Beginning inventory = $640

Depreciation = $1,090

Dividends paid = $1,250

Ending inventory = $550

Gross sales = $19,680

Interest expense = $660

Notes payable = $2,920

Operating expenses (excluding depreciation) = $3,200

• Purchases = $5,030

Returns and allowances = $250

Perril Company has a tax rate of 15 percent.

Using the data above, compute what Perril Company (a retail clothing store) reported as Operating Profit (i.e., EBIT) on its 2021 income statement.

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