Following are the income statement and some additional information for Carolina Consulting Company. Carolina Consulting Company Income Statement For the Year Ended December 31, 2018 Net sales $17,000 Cost of goods sold (2,900) Gross margin 14,100 Operating expenses $3,400 Depreciation expense 1,600 (5,000) Income before taxes 9,100 Income taxes (3,000) Net income $ 6,100 All sales were on credit and accounts receivable decreased by $1,040 in 2018 compared to 2017. Merchandise purchases were on credit with a decrease in accounts payable of $840 during the year. Ending inventory was $640 larger than beginning inventory. Income taxes payable increased $440 during the year. All operating expenses were paid for in cash