Use the following to answer questions 18 21

GOL Inc., begins the year with inventory of $51,200 and ends the year with inventory of $44,300. During the year, the following amounts are recorded:

Sales	$900,000
Sales returns & allowances	6,700
Sales discounts	15,000
Purchases	582,300
Operating expenses	212,000

18. $_____________Net Sales

19. $_____________Calculate cost of goods sold

20. $_____________ Gross profit

21. ___ ___. __% Gross profit ratio (rounded to once decimal place)

Use the following to answer questions 22 29

GHT Corporation reports the following amounts in its December 31, 20XD income statement:

Cost of goods sold	$425,000	Net sales	$875,000
Sales discounts	12,000	Advertising expense	95,000
Salaries expense	285,000	Utilities expense	7,500
Interest expense	3,000	Effective income tax rate	20%

22. $____________Determine Sales

23. $____________Determine gross profit

24. $____________Determine operating expenses

25. $____________Determine Income before income taxes (IBT)

26. $____________Determine Income tax expense

27. $____________Determine net income

28. ___ ___.___% Calculate gross profit ratio (round to one decimal place).

29. _____________Comparing GHTs common sized income statement with its competitor. The competitors gross margin is 45.0%, which company is doing better?