The income statement of Vince Gill Company is shown below.

VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue Cost of goods sold $6,991,960 $1,898,490 4,477,570 6,376,060 1,601,140 Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses 4,774,920 2,217,040 456,770 701,750 Selling expenses Administrative expenses Net income 1,158,520 $1,058,520 Additional information: 1. Accounts receivable decreased $319,820 during the year 2. Prepaid expenses increased $174,880 during the year 3. Accounts payable to suppliers of merchandise decreased $282,010 during the year . Accrued expenses payable decreased $112,390 during the year 5. Administrative expenses include depreciation expense of $52,330