During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000.

Question:

During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000.
A. What is the amount of the gross profit?
B. Compute the gross profit percentage (gross profit divided by sales).
C. Will the income statement always report a net income? Explain.