The income statement of Paxson Company is presented here.

PAXSON COMPANY Income Statement For the Year Ended November 30, 2014 Sales revenue $7,600,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory $1,900,000 4,400,000 6,300,000 1,600,000 Total cost of goods sold Gross profit Operating expenses 4,700,000 2,900,000 Selling expenses Administrative expenses 450,000 700,000 1,150,000 $1,750,000 Net income Additional information: 1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000 2. Prepaid expenses increased $150,000 during the year 3. Accounts payable to suppliers of merchandise decreased $350,000 during the year, 4. Accrued expenses payable decreased $100,000 during the year 5. Administrative expenses include depreciation expense of $110,000