On January 1, 2017, Casselberry Retailers had inventory of $50,000. On December 31, 2017, total inventory on hand was $66,000. Casselberry reported the following account balances on December 31:
Freight in....................................$ 4,000
Purchases...................................509,000
Purchase returns and allowances...........2,000
Purchase discounts...........................6,000
Sales........................................840,000
Sales discounts...............................5,000
Sales returns and allowances.............10,000
Instructions
(a) Calculate Casselberry Retailer's 2017 gross profit.
(b) Calculate Casselberry Retailer's 2017 operating expenses if profit is $130,000 and there are no non-operating activities.