Which of the following statements about gross profit is correct?

Multiple Choice

• Gross profit = Net sales Cost of goods sold.

• Gross profit is recorded by a credit to the Gross Profit account.

• A company sells $10,000 of goods. If the gross profit percentage is 32%, net income would be $3,200.

• If net sales are $100 and cost of goods sold is $50 then the gross profit percentage is 100%.