PART C. Answer on this exam paper. (10 total marks)

You find the following items on the 2013 statement of earnings of amounts of Yumm Brands, Inc.

Sales revenue $16,000

Sales discounts1,200

Sales returns and allowances300

Beginning inventory22,000

Purchases 10,000

Transportation in 2,000

Purchase returns 850

Ending inventory20,000

Expenses (operating)2,600

A. What is net sales?

B. What is net purchases?

C. What is cost of goods sold?

D. What is gross margin?

E. What is income before income tax?