17. Be able to solve for any missing amount in the cost of goods sold equation. 18. Be able to compute gross profit and the gross profit ratio. 19. Be able to solve for any missing amount or profit number in the multiple step income statement. Know the difference between gross profit, operating income, income before tax and net income. 20. Know the difference between operating items and non-operating items. 21. Know how to solve for cost of good sold with the equation or with the multiple step income statement format. 22. Know how to compute income tax expense. 23. Know what is ciassified as operating expenses. 24. Know what classifies as non-operating revenues and expenses. 25. Know how to compute ending inventory and cost of goods sold using FIFO. 26. Know how to compute ending inventory and cost of goods sold using LIFO. 27. Know how to compute ending inventory and cost of goods sold using weighted-average. 28. Know the impact on net income with price level changes (FIFO versus LiFO)