EXERCISE $6\mathrm{.}13$Income Statement Calculations and Interpretation$$LO$6-5,$ LO$6-6$

Mountain Mabel$$s is a small general store located just outside of Yellowstone National Park. On January $1,$ the inventory balance was $$6,240,$ and the inventory balance on December $31$ was $$4,560.$ Sales were $$150,000$ during the prior year, and purchases were $$74,400.$

Compute the cost of goods sold for the year.

Calculate the gross profit and the gross profit percentage for the year.

Does the gross profit percentage you have calculated mean that the company has a net income for the year?