Following is an incomplete current-year income statement.

Determine amounts a, b, and c. Additional information follows:

• Return on total assets is 16% (average total assets is $68,750).
• Inventory turnover is 5 (average inventory is $6,000).
• Accounts receivable turnover is 8 (average accounts receivable is $6,250).

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Income Statement $ (a) (b) 7,000 Net sales..... Cost of goods sold .... Selling, general, and administrative expenses. Income tax expense.. 2,000 Net income (c)