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 Quarter 1 5,000 Quarter 2 4,500 Quarter 3 5,600 Quarter 4 5,100 A$500,000 A$450,000 A$560,000 A$510,000 300,000 270,000 336,000 306,000 200,000 180,000 224,000 204,000 21,500 21,500 21,500 21,500 36,000 38,000 42,400 37,900 81,000 79,000 92,200 87,900 6,500 6,500 6,500 6,500 15,500 160,500 15,500 160,500 15,500 15,500 178,100 169,300 A$ 39,500 A$ 19,500 A$ 45,900 A$ 34,700 Net income (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$.)