During the current year, merchandise is sold for $4,885,000. The cost of the merchandise sold is $3,028,700.

Question:

During the current year, merchandise is sold for $4,885,000. The cost of the merchandise sold is $3,028,700.
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 necessarily report a net income? Explain.