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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:

  1. Cost of goods sold
  2. Net income, given that income from operations is $87,500.

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