You can also use the foldout worksheets at the end of the working papers that accompany this text. 11A-1. Based on the following accounts, calculate (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income. C H A P T E R 11 Preparing a Worksheet for a Merchandise Company 429 Accounts Payable Operating Expenses Market Co., Capital Purchases Freight-In Ending Merchandise Inventory, Dec. 31, 201X Sales Accounts Receivable Cash Purchases Discount Sales Returns and Allowances Beg. Merchandise Inventory, Jan. 1, 201X Purchases Returns and Allowances Sales Discount $6,3001,60019,7001,100 85 68 6,400 450 780 47 340 83 71 85 Check Figure: Net income $3,293