The income statement of Larkspur Company is shown below LARKSPUR COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,870,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,920,000 4,370,000 6,290,000 1,600,000 4,690,000 Gross profit Operating expenses 2,180,000 Selling expenses Administrative expenses 450,000 700,000 1,150,000 $1,030,000 Net income Additional information: 1. Accounts receivable decreased $400,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $110,000 during the year. 5. Administrative expenses include depreciation expense of $60,000