Brand new iMac 27 has no sound

A buddy just got a brand new iMac 27, out the box last night. It has no sound.
He went to Systems Preferences and the Sound page provides no solution. Nothing can be clicked.
I know the solution is probably insanely simple, but cannot figure it out.
Help please.

The simple solution is take it back to Apple and ask them to fix it.
Allan

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