Donald Company began the year with $5,000 of inventory. During the year it purchased $25,000 of inventory, sold $32,000, and incurred $500 of returns, $100 of discounts, $800 of transportation in, and $1,200 of transportation out. It also had $13,000 of operating expenses. At the end of the year it had $4,000 of inventory remaining. The cost of goods sold for Donald Company was calculated to be $39,400.