Diaz Company had the following account balances at the end of the year:

Additional Resources

	Beginning Inventory	$41,500			Purchases Returns and Allowances	$5200
	Ending Inventory	39,400			Purchases	75700
	Freight-In	3,800			Sales Discounts	8100
	General and Administrative Expenses	21,300			Sales Returns and Allowances	5800
	Interest Revenue	1,280			Sales	201400
	Interest Expense	1,020			Selling Expenses	23800
	Purchase Discounts	4,700

Required:

Compute the following:

1. Cost of goods purchased
2. Income from operations, given that gross profit is $115,800.