Balance Sheets
Balanced Sheet:	Beginning Balance	Ending Balance	Average Balance
Assets
Cash	$ 150,000	$ (387,000)	$ (118,500)
Accounts receivable	$ 180,000	189,000	184,500
Inventory	$ 240,000	252,000	246,000
Property, plant & equipment (net)	$ 793,000	903,000	848,000
Other assets	$ 37,000	$ 37,000	37,000
Total assets	$ 1,400,000	$ 994,000	$ 1,197,000
Liabilities & stockholders' equity
Accounts payable	$ 80,000	84,000	$ 82,000
Bonds payable	$ 550,000	500,000	525,000
Common stock	$ 410,000	410,000	410,000
Retained earnings	$ 360,000
Total liabilities & stocholders' equity	$ 1,400,000	$ 994,000	$ 1,017,000
Edman Company
Income Statement
Sales	$ 2,625,000
Variable expenses:
Cost of goods sold
Variable selling expense	252,000
Total variable expenses	252,000
Contribution margin	2,373,000
Fixed expenses:
Fixed selling expense	220,000
Fixed administrative expense	300,000
Total fixed expenses	520,000
Net operating income	1,853,000
Interest expense (8%)	42,000
Net income before tax	1,811,000
Tax expense (30%)	543,300
Net income	$ 1,267,700

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