Gallagher's had gross sales of $747,000 with returns of $39,400. The inventory on January 1 was $463,000, and the cost of goods purchased during the year was $245,000. Freight costs during the year were $12,600. Total inventory on December 31 was $510,000. Salaries and wages totaled $126,000, rent was $31,000, advertising was $14,500, utilities were $13,700, taxes on inventory and payroll were $4,600, and miscellaneous expenses totaled $18,400. Income taxes were $24,900.

Gallagher's

Income Statement

Year Ending December 31

Gross Sales

__________

Returns

__________

Net Sales

__________

Inventory, January 1

__________

Cost of Goods Purchased

__________

Freight

__________

Total Cost of Goods Purchased

__________

Total of Goods Available for Sale

__________

Inventory, December 31

__________

Cost of Goods Sold

__________

Gross Profit

__________

Expenses

Salaries and Wages

__________

Rent

__________

Advertising

__________

Utilities

__________

Taxes on Inventory and Payroll

__________

Miscellaneous Expense

__________

Total Expenses

__________

Net Income Before Taxes

__________

Income Taxes

__________

Net Income After Taxes

__________

Find the Net Income After Taxes.

Question 14 options:

$263,900

$472,100

$561,900

$313,700