Finding gross profit for a fiscal year

Question

Freight-In merchandise purchased $1,500, Merchandise Inventory, Jan 1, $30,000, Merchandise Inventory, December 31, $50,000, Purchases $100,000; Purchases discounts taken 2,800; Purchases returns and allowances $2,000; Sales 116,500; Sales returns and allowances $1,100.

Answer 1

Sales  =  $115400   (ie 116500 less returns of 1100)

Purchases in year = $96700 (ie 1500+100000-2800-2000)

TRADING ACCOUNT

Sales...........................115400

Op Stock....     30000

Purchases....   96700

Cl Stock....     (50000)....76700

GROSS PROFIT............38700