Hernandez Clothing Store employs the perpetual inventory system and prepares monthly financial statements. All accounts have been adjusted except for merchandise inventory. A physical count of merchandise inventory on November 30, 2014, indicates that $21,000 was on hand. A partial listing of account balances follows:

Accounts Receivable $ 9,000

Merchandise Inventory 23,000

Commissions Expense 600

Sales Returns and Allowances 1,800

Freight Out 1,200

Cost of Goods Sold 31,000

Sales 55,000

Instructions:

 a. Prepare a partial income statement for the Hernandez Clothing Store for the month ended November 30, 2014. The income statement should show items through the gross profit category.

b. Calculate Hernandez's gross profit margin for November, 2014.