The income statement of Splish Company is shown below. SPLISH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $7,380,000 Cost of goods sold Beginning inventory $1,890,000 Purchases 4,080,000 Goods available for sale 5,970,000 Ending inventory 1,650,000 Cost of goods sold 4,320,000 Gross profit 3,060,000 Operating expenses Selling expenses 440,000 Administrative expenses 650,000 1,090,000 Net income $1,970,000 Additional information: 1. Accounts receivable decreased $310,000 during the year. 2. Prepaid expenses increased $180,000 during the year.