Determining Gross Profit During the current year, merchandise is sold for $601.000. The cost of the goods sold is $408,680. a. What is the amount of the gross profit? b. Compute the gross profit percentage (pross profit divided by sales). Round to the nearest whole number c. When will the income statement report net income? If operating expenses are less than gross profit. V Feedback Check My Work (a) The difference between the selling price of merchandise sold and the cost of the inventory sold is gross profit. (b) Divide the gross profit by sales. (c) Recall that net income is revenue (sales) less all expenses, including the cost of merchandise sold. Learning Objective 1