LanWan Software, Inc., had Sales Revenue of $52 million, Sales Returns and Allowances of $1.5 million, and

Question:

LanWan Software, Inc., had Sales Revenue of $52 million, Sales Returns and Allowances of $1.5 million, and Sales Discounts of $0.5 million in 2012. Cost of goods sold was $23 million, and net income was $10 million for the year.

Requirement
1. Compute LanWan Software’s gross profit percentage and net income percentage for 2012.