LaPine Company has the following account balances as of December 31, 2012:

Purchase returns and allowances..............$ 400

Inventory, January......................................14,000

Sales............................................................80,000

Transportation-in........................................1,000

Sales returns and allowances.......................500

Purchase discounts........................................800

Inventory, December 31............................3,800

Purchases..................................................30,000

Sales discounts..........................................1,200

Required

Prepare a partial income statement for LaPine Company for 2012 through gross profit. CalculateLaPine's gross profit ratio for 2012.