Question: During the current year, merchandise is sold for $775,000. The cost of the merchandise sold is $426,250. a. What is the amount of the gross

During the current year, merchandise is sold for $775,000. The cost of the merchandise sold is $426,250.
a. What is the amount of the gross profile?
b. Compute the gross profile percentage (gross profile divided by sales).
c. Will the income statement necessarily report a net income? Explain.

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