Balance Sheets
Balanced Sheet:	Beginning Balance	Ending Balance	Average Balance
Assets
Cash	$ 150,000	$ (387,000)	$ (118,500)
Accounts receivable	$ 180,000	189,000	184,500
Inventory	$ 240,000	252,000	246,000
Property, plant & equipment (net)	$ 793,000	903,000	848,000
Other assets	$ 37,000	$ 37,000	37,000
Total assets	$ 1,400,000	$ 994,000	$ 1,197,000
Liabilities & stockholders' equity
Accounts payable	$ 80,000	84,000	$ 82,000
Bonds payable	$ 550,000	500,000	525,000
Common stock	$ 410,000	410,000	410,000
Retained earnings	$ 360,000
Total liabilities & stocholders' equity	$ 1,400,000	$ 994,000	$ 1,017,000
Edman Company
Income Statement
Sales	$ 2,625,000
Variable expenses:
Cost of goods sold
Variable selling expense	252,000
Total variable expenses	252,000
Contribution margin	2,373,000
Fixed expenses:
Fixed selling expense	220,000
Fixed administrative expense	300,000
Total fixed expenses	520,000
Net operating income	1,853,000
Interest expense (8%)	42,000
Net income before tax	1,811,000
Tax expense (30%)	543,300
Net income	$ 1,267,700

- Next years sales and variable expenses increase by 5%.

- Next years fixed expenses are the same as this year.

- Next years ending balances in accounts receivable, inventory, and accounts payable each increase by 5% compared to their respective beginning balances.

- Next years ending balance in property, plant, and equipment (net) increases by $110,000 compared to its beginning balance. This reflects the purchase of a $150,000 piece of equipment minus next years depreciation expense of $40,000.

- Next years ending balance in bonds payable decreases by $50,000 compared to its beginning balance. This reflects a bond issuance of $150,000 to purchase the equipment and a bond retirement of $200,000.

- Next years ending balances in other assets and common stock are the same as their beginning balances.

Given the following information, what is the cost of good sold?