The income statement of Sandhill Company is shown below. SANDHILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,850,000 Cost of goods sold Beginning inventory $1,920,000 Purchases 4,410,000 Goods available for sale 6,330,000 Ending inventory 1,600,000 Cost of goods sold 4,730,000 Gross profit 2,120,000 Operating expenses Selling expenses 450,000 Administrative expenses 700,000 1,150,000 Net income $970,000