The income statement of Grouper Company is shown below. GROUPER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,980,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,850,000 4,580,000 6,430,000 1,570,000 4,860,000 2,120,000 Gross profit Operating expenses Selling expenses Administrative expenses 410,000 760,000 1,170,000 $950,000 Net income Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000