Net sales Expenses:

Cost of goods sold

$640,000

 

360,000

Selling and administrative expense

43,000

Other expense

2,000

Total expenses

405,000

Income before income tax

235,000

Income tax

92,000

Net income

$143,000

Other data:

 

a.   Cost of goods sold, including

 

depreciation expense of  $15,000

 

b.   Selling and administrative expense,  including

 

depreciation expense of  $5,000

 

c.    Other expense, representing amortization

 

of patent, $3,000, and amortization

 

of bond premium, $1,000

 

d.   Increase in accounts receivable

$ 27,000

e.    Increase in accounts payable

15,000

f.  Increase in inventories

35,000

g.   Decrease in prepaid expenses

1,000

h.   Increase in accrued  liabilities

3,000

i.    Decrease in income taxes  payable

10,000