Click to watch the Concept Clip Income Statement for Merchandise video and then answer the questions below. 1. Which of the following describes how a merchandise income statement is different from a service income statement? a. The revenue from a merchandise business is reported as fees earned. b. The program and production expenses are subtracted from gross profit to arrive at operating income. c. Depreciation and amortization expenses are added to the cost of goods sold. d. A merchandise business shows a gross profit line. 2. How is gross profit for a merchandise business determined? a. sales minus cost of goods sold b. gross profit minus operating income c. sales revenue plus depreciation expense d. operating income plus sales 3. Which of the following is subtracted from gross profit to reach operating income? a. programming and production and expenses b. amortization expenses c. depreciation expenses d. selling, administrative revenue, and manufacturing costs eBook Show Me How Gross Profit During the current year, merchandise is sold for $18,300 cash and $295,700 on account. The cost of the goods sold is $188,000. What is the amount of the gross profit