The following balances are taken from the records of Mohan Corp. at December 31, 2016, its first

Question:

The following balances are taken from the records of Mohan Corp. at December 31, 2016, its first year-end:
Transportation-in
Delivery expense
Sales
Purchases
Sales returns and allowances
Purchase returns and allowances
Sales Discounts
Purchase discounts
Interest expense
$ 500
1,200
25,000
20,000
2,000
1,000
400
300
4,000
The inventory at December 31, 2016 amounted to $7,900.
Required:
1. Calculate the gross profit.
2. What is the gross profit percentage?