The financial records of Skysong Inc. were destroyed by fire at the end of 2025 . Fortunately the controller had kept certain statistical data related to the income statement as presented below. 1. The beginning merchandise inventory was $190,800 and decreased 20% during the current year. 2. Sales discounts amount to $19,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $27,000. 5. The income tax rate is 30%. 6. Cost of goods sold amounts to $1,020,000. 7. Administrative expenses are 20% of cost of goods sold but only 8% or gross sales. 8. Four-fifths of the operating expenses relate to sales activities. Operating expenses consist of selling and administrative expenses