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Gallagher's had gross sales of $747,000 with returns of $39,400. The inventory on January 1 was $463,000, and the cost of goods purchased during the year was $245,000. Freight costs during the year were $12,600. Total inventory on December 31 was $510,000. Salaries and wages totaled $126,000, rent was $31,000, advertising was $14,500, utilities were $13,700, taxes on inventory and payroll were $4,600, and miscellaneous expenses totaled $18,400. Income taxes were $24,900.
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