III. Information pertaining to Spicy Nachos Rest adjusted accounts for the year ended June 30, 2018, is as follows:

Sales

690,000

Inventory (July 1, 2017)

43,200

Purchases

562,000

Freight -in

23,500

Purchases returns

9,000

General and Administrative Expenses

86,000

The only adjustments not included in the above information is the adjustment for ending inventory (assume a periodic inventory system).

Inventory on June 30, 2018, as per physical count was valued amounting $ 30,800.

Please compute:

1. Gross Profit
2. Net Income before income tax