The income statement of Monty Company is shown below MONTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $7,070,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,980,000 4,820,000 6,800,000 1,510,000 5,290,000 1,780,000 Gross profit Operating expenses Selling expenses Administrative expenses 480,000 640,000 1,120,000 $660,000 Net income Additional information: 1. Accounts receivable decreased $300,000 during the year 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Administrative expenses include depreciation expense of $60,000