The financial statements of Access Corporation for the year ended December 31, 2012, follow.

Access Corporation Income Statement For the Year Ended December 3 1, 2012 Sales revenue Less: Cost of goods solda Gross profit Less operating expenses: Selling expense General and administrative expense Lease expense Depreciation expense Total operating expenses Operating profit Less: Interest expense Net profit before taxes Less: Taxes @ 40% Net profits after taxes $160,000 106,000 $ 54,000 $16,000 10,000 1 ,ooo 10,000 37,000 $17,000 6,100 $10,900 4,360 $ 6,540 Corporation's annual purchases are estimated to equal 75 percentl of cost of goods sold.