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Patterson Company had the following account balances at the end of the year: Additional Resources Beginning Inventory $37,000 Purchases Returns and Allowances $4000 Ending Inventory
Patterson Company had the following account balances at the end of the year:
Additional Resources
| Beginning Inventory | $37,000 |
| Purchases Returns and Allowances | $4000 | |
| Ending Inventory | 42,600 |
| Purchases | 72800 | |
| Freight-In | 3,400 |
| Sales Discounts | 5800 | |
| General and Administrative Expenses | 15,400 |
| Sales Returns and Allowances | 5900 | |
| Interest Revenue | 1,840 |
| Sales | 197400 | |
| Interest Expense | 1,630 |
| Selling Expenses | 19800 | |
| Purchase Discounts | 3,600 |
Required:
Compute the following:
- Cost of goods sold
- Net income, given that income from operations is $87,500.
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