Problem II: As each of the followin increase will Gross margin/gross profit is defined as the subtotal on the multi-step the difference between net sales and cost of goods sold. The first two have been done as examples. g account balances increases in 20X4, indicate the effect, if any, the have on the company's gross profit (also known as gross margin) and net income in 20X4. income statement determined by taking As the following account balance increases in 20X4: Net Sales RevenueGross Profit Salaries Expense Dividends Effect on No effect No effect Effect on No effect No effect Effect on Net Income Decrease No effect a. Sales Revenue b. Sales Discounts c. Sales Returns and Allowances d. Bad Debt Expense e. Interest Revenue f. Note Receivable g. Cost of Goods Sold