*E5-16 On January 1, 2012, Evangeline Lilly Corporation had merchandise inventory of $50,000. At December 31, 2012, Evangeline Lilly had the following account balances. Freight-in Purchases Purchase discounts Purchase returns and allowances Sales revenue Sales discounts $ 4,000 509,000 6,000 2,000 840,000 5,000 10,000 Sales returns and allowances At December 31, 2012, Evangeline Lilly determines that its ending inventory is $60,000. Instructions (a) Compute Evangeline Lilly's 2012 gross profit. (b) Compute Evangeline Lilly's 2012 operating expenses if net income is $130,000 and there are