On January 1, 2014, Clover Corporation had inventory of $50,000.

At December 31, 2014, Clover had the following account balances.

At December 31, 2014, Clover determines that its ending inventory is $60,000.

.

Freight-in	$ 4,000
Purchases	509,000
Purchase discounts	6,000
Purchase returns and allowances	8,000
Sales revenue	840,000
Sales discounts	7,000
Sales returns and allowances	11,000

Instructions

(a) Compute Clovers 2014 gross profit.

(b) Compute Clovers 2014 operating expenses if net income is $130,000 and there are no non-operating activities