Answer:
Gross Profit = $304,050
Operating expenses = $162,050
Explanation:
The computation of gross profit and operating expenses is shown below:-
Net purchases = Purchase - Purchase discounts - Purchase returns and allowances
= $505,500 - $7,250 - $3,500
= $494,750
Cost of goods sold = Net purchases + Freight-in + Inventory + Ending inventory
= $494,750 + $4,100 + $56,000 - $66,000
= $488,850
Gross profit = Net sales - Cost of goods sold
= ($810,000 - $5,100 - $12,000) - $488,850
= $304,050
Operating expenses = Gross profit - Net income
= $304,050 - $142,000
= $162,050
