Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches can report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $500 each.

July 17	Purchased 50 watches for $7,500 ($150 per watch) on account.
July 31	Sold 40 watches for $20,000 cash.
August 12	Purchased 40 watches for $6,400 ($160 per watch) cash.
August 22	Sold 30 watches for $15,000 on account.
September 19	Paid for watches purchased on July 17.
September 27	Receive cash of $9,000 for watches sold on account on August 22.
October 27	Purchased 80 watches for $13,600 ($170 per watch) cash.
November 20	Sold 90 watches for $45,000 cash.
December 4	Purchased 100 watches for $18,000 ($180 per watch) on account.
December 8	Sold 40 watches for $20,000 on account.

Required:

1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2027, assuming Suzie uses FIFO to account for inventory.

1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.