Information pertaining to Spicy Nachos Rest

Information pertaining to Spicy Nachos Rest adjusted accounts for the year ended June 30, 2015, is as follows:

Sales 690,000

Inventory (July 1, 2014) 43,200

Purchases 562,000

Freight -in 23,500

Purchases returns 9,000

General and Administrative Expenses 86,000

The only adjustments not included in the above information are the adjustment for ending inventory (assume a periodic inventory system) and income tax.

Inventory on June 30, 2015, as per physical count was valued amounting $ 30,800.

Please compute:

a) Gross Profit

b) Net Income before income tax

(Hint: Refer to two-step income statement format and Cost of Goods Sold computation)