Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $928,800 $720,000 Cost of merchandise sold 781,200 620,000 Gross profit $147,600 $100,000 Selling expenses $44,030 $37,000 Administrative expenses 39,370 31,000 Total operating expenses $83,400 $68,000 Income before income tax expense $64,200 $32,000 Income tax expenses 25,700 12,800 Net income $38,500 $19,200