LaPine Company has the following account balances as of December 31, 2010:
Purchase returns and allowances ........... $ 400
Inventory, January ................ 1 4,000
Sales ...................... 80,000
Transportation-in ................. 1,000
Sales returns and allowances ............ 500
Purchase discounts ................ 800
Inventory, December 31 ............... 3,800
Purchases ................... 30,000
Sales discounts ................. 1,200
Required
Prepare a partial income statement for LaPine Company for 2010 through gross profit. Calculate LaPine’s gross profit ratio for 2010.