Morrisey & Brown, Ltd, of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow. Sales in units Sales revenue Less: Cost of goods sold Gross margin MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Quarter 1 Quarter 2 5,400 4,900 Quarter 3 Quarter 4 6,080 5,500 A$540,000 A$490,000 A$608,000 A$550,000 324,000 294,000 364,800 330,000 216,000 196,000 243,200 220,000 21,900 21,900 21,900 21,900 37,600 39,600 44,320 39,420 83,400 79,800 93,960 90,220 6,900 6,900 6,900 6,900 15,900 15,900 15,900 15,90 165,700 164,100 182,980 174,340 A$ 50,300 A$ 31,900 A$ 60,220 A$ 45,660 (Note: Morrisey & Brown, Ltd's Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$)