Hayes Company had the following account balances at the end of the year: Beginning Inventory $ 39,400 Purchases Returns and Allowances $ 5900 O Ending Inventory 41,400 Purchases 86800 U Freight-In 3,300 Sales Discounts 7300 General and Administrative Expenses 25,000 Sales Returns and Allowances 6500 Interest Revenue 2,350 Sales 196000 Interest Expense 1,010 Selling Expenses 25700 Purchase Discounts 5,100 Required: Compute the following: 1. Gross profit 2. Net income, given that income from operations is $54,400.