1. XYZcom, being a startup, had a zero beginning inventory. They spent $425,000 on inventory items, receiving $12,000 for prompt payment and paying $10,000 for freight. Their closing inventory is $84,000. Determine thecost of goods soldand theclosing entriesfor a periodic inventory.
2. Prepar anincome statementusing your calculations. Show gross profit and net income. You will need the following information:

• Sales were $1,375,000.00
• Administrative and sales expenses $225,000.00
• Interest on debt is $97,000.00
• Tax paid at 30%