The following is the trial balance of Sheridan Corporation at December 31, 2020.

SHERIDAN CORPORATION TRIAL BALANCE DECEMBER 31, 2020
		Debits			Credits
Purchase Discounts					$ 14,000
Cash		$ 265,580
Accounts Receivable		147,000
Rent Revenue					25,200
Retained Earnings					224,000
Salaries and Wages Payable					25,200
Sales Revenue					1,540,000
Notes Receivable		154,000
Accounts Payable					68,600
Accumulated DepreciationEquipment					39,200
Sales Discounts		20,300
Sales Returns and Allowances		24,500
Notes Payable					98,000
Selling Expenses		324,800
Administrative Expenses		138,600
Common Stock					420,000
Income Tax Expense		75,460
Cash Dividends		63,000
Allowance for Doubtful Accounts					7,000
Supplies		19,600
Freight-in		28,000
Land		98,000
Equipment		196,000
Bonds Payable					140,000
Gain on Sale of Land					42,000
Accumulated DepreciationBuildings					27,440
Inventory		124,600
Buildings		137,200
Purchases		854,000
Totals		$ 2,670,640			$ 2,670,640

A physical count of inventory on December 31 resulted in an inventory amount of $ 89,600; thus, cost of goods sold for 2020 is $ 903,000.

(a1)

Prepare a single-step income statement. 42,000 shares of common stock were outstanding the entire year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Please answer question and explain how the Cost of Goods sold was calculated.