Gross profit$-$Operating expenses $=$ Income from operations $($or Net income$)$

Cost of goods sold $+{?}^{**}$ Gross profit ol Other expenses and losses Sales returns and allowances

Sales revenue

Net sales

Selling expenses

Administrative expenses

Gross profit

Sales discounts

Other revenues and gains

$=$ Net sales

Income from operations $+$

Net sales $-$ Cost of goods sold $=$