1. The following information relates to certain accounts of Quotient Corporation for the year ended December 31, 2020: [4 marks]

Cost of goods sold	$ 84,500	Interest expense	$ 585
Sales returns & allowances	2,240	Accounts payable	30,400
Depreciation expense	71,150	Sales discounts	960
Salaries expense	40,895	Prepaid rent	875
Sales revenue	245,900	Rental revenue	6,000
Rent expense	9,500	Inventory	78,000

The tax rate for Quotient is 30%.

Required:

Calculate the following amounts (show your calculations):

1. Gross profit
2. Net income