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Question introductive
Fairplay reported the information shown in Exhibit 1 related to the sale of its products during 2009, which was its first year of business: <table style="width:90%;text-align:center"> <caption>Exhibit 1: Fairplay</caption> <tr><td>Revenue </td><td>USD1,000,000</td></tr> <tr><td>Returns of goods sold </td><td>USD100,000</td></tr> <tr><td>Cash collected </td><td>USD800,000</td></tr> <tr><td>Cost of goods sold </td><td>USD700,000</td></tr> </table>
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