During the current year, merchandise is sold for $6,400,000. The cost of the goods sold is $5,376,000.

Question:

During the current year, merchandise is sold for $6,400,000. The cost of the goods sold is $5,376,000.
a. What is the amount of the gross profit?
b. Compute the gross profit percent.
c. Will the income statement necessarily report a net income? Explain.