Here's a partial record of the J. Shafer Company as of December 31, 20XX.

Purchase Returns $1,500

Sales Discounts 900

Operating Expenses 20,000

Transportation-in 1,100

Ending Inventory 7,400

Sales 53,500

Beginning Inventory 9,500

Purchases 27,200

15. The cost of goods sold is

A. $37,800.

C. $29,800.

B. $36,700.

D. $28,900.

16. The company's net income is

A. $17,400.

B. $16,800.

C. $4,600.

D. $3,700.