Jones, Inc. Lee Supply Net Sales Revenue 99,000 Cost of Goods Sold Beginning Merchandise Inventor Purchases and Freight In Cost of Goods Available for Sale Ending Merchandise Inventory Cost of Goods Sold 31,000 51,000 92,000 (1,900) (1,900) 60,000 39,000 Gross Profit Selling and Administrative Expenses Operating Income 113,000 87,000 14,000