Pharoah Ltd. is a small restaurant and culinary business started four years ago by Jennifer Davis. Initially the company's operations consisted of a small diner. In 2023, the company added online culinary lessons to expand sales. The online culinary events are sold to corporations that provide the lessons as performance incentives to their employees. As the culinary lessons side of the business grew in 2024, the company purchased a used vehicle to deliver meal kits to be used for the lessons. All sales in the diner are cash, debit, or credit card, but culinary lessons, which are sold to corporations, are invoiced after the event with payment due in 30 days. Most of the company's suppliers offer terms of 15 days. Selected financial information for Pharoah Ltd. follows. 2024 2023 Assets Cash $9,840 $6,990 Accounts receivable 20,360 12,640 Inventory 14,020 7,310 Land 17,460 17,460 Building and equipment 41,230 36,440 Total assets $102,910 $80,840 Liabilities and equity Accounts payable $7,390 $8,770 Short-term note payable 2,030 1,980 Mortgage payable current 4,400 4,400 Mortgage payable 31,270 35,640 Share capital 15,270 15,270 Retained earnings 42,550 14,780 Total liabilities and equity $102,910 $80,840 Other information Sales $209,540 $171,480 Cost of goods sold 86,370 79,390 Net income 27,770 11,490 (a1) Assume the growth in sales in 2024 is primarily from the online lessons. Calculate the gross margins and the profit margins. (Round answers to 1 decimal place, e.g. 15.1%.)