Dences Gourmet Shop
Partial Adjusted Trial Balance
March 31, 2014
Sales			433,912
Sales Returns and Allowances	11,250
Purchases	221,185
Purchases Returns and Allowances			30,238
Freight-In	10,078
Store Salaries Expense	107,550
Office Salaries Expense	26,500
Advertising Expense	18,200
Rent Expense	14,400
Insurance Expense	2,800
Utilities Expense	18,760
Store Supplies Expense	464
Office Supplies Expense	814
Depreciation Expense Store Equipment	1,800
Depreciation Expense Office Equipment	1,850

The merchandise inventory for Dences was $81,222 at the beginning of the year and $76,664 at the end of the year.

1. What is the net income?

2. What is the gross margin?