During the current year, merchandise is sold for $795,000. The cost of the merchandise sold is $477,000.

Question:

During the current year, merchandise is sold for $795,000. The cost of the merchandise sold is $477,000.
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 necessarily report a net income? Explain.