Question $4$ :

Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $$645,000$; Purchase Returns and Allowances $$28,000$; Purchase Discounts $$11,500$; and Freight$-$In $$15,000$; beginning inventory of $$45,000$; ending inventory of $$55,000$; and net sales of $$850,000.$

Instructions:

$1)$ Determine the a$)$ cost of goods sold and b$)$Gross profit $($ show computations $)$

$2)$ Prepare a detailed income statement