The income statement of Paxson Company is presented here.

PAXSON COMPANY
Income Statement
For the Year Ended November 30, 2014
Sales revenue $7,600,000

Cost of goods sold
Beginning inventory $1,900,000
Purchases 4,400,000
Goods available for sale 6,300,000
Ending inventory 1,600,000
Total cost of goods sold 4,700,000

Gross profit 2,900,000
Operating expenses
Selling expenses 450,000
Administrative expenses 700,000 1,150,000

Net income $1,750,000


Additional information:
1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.