The financial records of Whispering 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 $183,000 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 $23,000. 5. The income tax rate is 30%. 6. Cost of goods sold amounts to $1,060,000. 7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales. 8. Four-fifths of the operating expenses relate to sales activities. Operating expenses consist of selling and administrative expenses. Question 12 of 20 0.36/0.65 WHISPERING INC. Income Statement For the Year Ended December 31, 2025 Sales Revenue \begin{tabular}{|ll|l||} \hline \hline Add : Cost of Goods Sold \\ \hline \hline \end{tabular} Net Sales Expenses Cost of Goods Sold $ \begin{tabular}{|l|l|} \hline 1060000 & i \\ \hline \end{tabular} Selling Expenses Administrative Expenses Interest Expense Question 12 of 20 Administrative Expenses Interest Expense Total Expenses Income before Income Tax Income Tax Expense Net Income / (Loss)