Carolina Communications reported the following figures in its financial statements:

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S5-10 Preparing a merchandiser’s income statement [5–10 min]
Carolina Communications reported the following figures in its financial statements:

Cash $3,800 Cost of goods sold $18,000
Total operating expenses 3,500 Equipment, net 10,200
Accounts payable 4,100 Accrued liabilities 1,700
Total owner’s equity 4,200 Net sales revenue 28,000
Long–term notes payable 700 Accounts receivable 2,700
Inventory 500