Please do not give solution in image format thanku 4. On January 1, 2010, Rachael Ray Corporation had merchandise inventory of $50,000. At December31, 2010, Rachael Ray had the following account balances.Freight-inPurchasesPurchase discountsPurchase returns and allowances$ 4,000500,0006,0002,000Sales800,000Sales discounts5,000Sales returns and allowances10,000At December 31, 2010, Rachael Ray determines that its ending inventory is $60,000.Instructions(a) Compute Rachael Ray's 2010 gross profit.(b) Compute Rachael Ray's 2010 operating expenses if net income is $130,000 and there are nonon-operating activities

Gross profit means the amount of earnings made by the entity after deducting the cost of goods sold…

4. On January 1, 2010, Rachael Ray Corporation had merchandise inventory of $50,000. At December 31, 2010, Rachael Ray had the following account balances. Freight-in Purchases Purchase discounts Purchase returns and allowances Sales Sales discounts $ 4,000 500,000 6,000 2,000 800,000 5,000 10,000 Sales returns and allowances At December 31, 2010, Rachael Ray determines that its ending inventory is $60,000. Instructions (a) Compute Rachael Ray's 2010 gross profit. (b) Compute Rachael Ray's 2010 operating expenses if net income is $130,000 and there are no non-operating activities