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 MORRISEY & BROWN, LTD. Income Statements For the Four Quarters Ending December 31 Less: Cost of goods sold Gross margin Less: Operating expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total operating expenses Net income Quarter 1 5,600 Quarter 2 Quarter 3 Quarter 4 5,100 6,320 5,700 A$560,000 A$510,000 A$632,000 A$570,000 336,000 306,000 379,200 342,000 224,000 204,000 252,800 228,000 22,100 22,100 22,100 22,100 38,400 40,400 45,280 40,180 84,600 80,200 94,840 91,380 7,100 7,100 7,100 7,100 16,100 168, 300 16,100 165,900 16,100 185,420 16,100 176,860 A$ 55,700 A$ 38,100 A$ 67,380 A$ 51,140 (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$.)