Balance Sheets
Balanced Sheet:	Beginning Balance	Ending Balance	Average Balance
Assets
Cash	$ 150,000	$ (272,000)	$ (61,000)
Accounts receivable	$ 180,000	234,000	207,000
Inventory	$ 240,000	312,000	276,000
Property, plant & equipment (net)	$ 793,000	753,000	773,000
Other assets	$ 37,000	37,000	37,000
Total assets	$ 1,400,000	$ 1,064,000	$ 1,232,000
Liabilities & stockholders' equity
Accounts payable	$ 80,000	104,000	$ 92,000
Bonds payable	$ 550,000	550,000	550,000
Common stock	$ 410,000	410,000	410,000
Retained earnings	$ 360,000
Total liabilities & stocholders' equity	$ 1,400,000	$ 1,064,000	$ 1,052,000
Edman Company
Income Statement
Sales	$ 3,250,000
Variable expenses:
Cost of goods sold
Variable selling expense	$ 312,000
Total variable expenses	312,000
Contribution margin	2,938,000
Fixed expenses:
Fixed selling expense	420,000
Fixed administrative expense	300,000
Total fixed expenses	720,000
Net operating income	2,218,000
Interest expense (8%)	44,000
Net income before tax	2,174,000
Tax expense (30%)	652,200
Net income	$ 1,521,800

Given the following information, how do you find the cost of goods sold and ending retained earnings?