The following amounts appeared on the Mendelstein Company's adjusted trial balance as of October 31, 2014, the end of its fiscal year:

A physical count shows that the cost of the ending inventory is $12,600.
Required
1. Calculate the company's net sales for the year.
2. Calculate the company's cost of goods purchased for the year.
3. Calculate the company's cost of goods sold for the year.
4. Present a multiple-step income statement that lists the company's net sales, cost of goods sold, and gross profit from sales.

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Debit Credit Merchandise inventory S 1,400 40,000 Liabilities Joe Mendelstein, capital oe Mendelstein, withdrawals.... 36,340 37,375 3,000 150 96,400 Sales... Sales discounts Purchase returns and allowances 7,500 1,125 43,500 2,150 900 Transportation-in. Sales salaries expens Rent expense, selling space Store supplies expense Advertising expense Office salaries expense Rent expense, office space Office supplies expense Totals... 5,050 17,800 9,200 3,200 9,000 . ..22,000 2,940 . $173,315 173,315