Given the information below figure Gross Profit (Gross Margin): cash = 1,300,000 accounts receivable = 1,750 sales - 275,500 purchases = 18,000 merchandise inventory (31 Dec) = 19,275 accounts payable = 6,353 transportation-in = 2,300 prepaid insurance - 15,000 purchase discounts - 500 sales discounts - 750 purchase returns and allowances - 350 sales returns and allowances = 205 merchandise inventory (1 Jan) 40,000 depreciation expense delivery equipment - 4,500 wages expense - 46,500 supplies - 2,450 capital = 278,346