Exercise 23-4 Your answer is partially correct. Try again The income statement of Metlock Company is shown below METLOCK COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,930,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,890,000 4,410,000 6,300,000 1,590,000 4,710,000 Gross profit Operating expenses 2,220,000 Selling expenses Administrative expenses 450,000 1,150,000 $1,070,000 700,000 Net income Additional information: 1. Accounts receivable decreased $370,000 during the year 2. Prepaid expenses increased $160,000 during the year 3. Accounts payable to suppliers of merchandise decreased $290,000 during the year, 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000