During the current year, merchandise is sold for $1,375,000. The cost of the merchandise sold is $880,000.
Question:
a. What is the amount of the gross profit?
b. Compute the gross profit percentage (gross profit divided by sales).
c. Will the income statement necessarily report a net income? Explain.
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a 495000 1375000 880000 b 36 495000 1375000 c No It ...View the full answer
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