Given the information below figure Gross Profit (Gross Margin): cash = 1,300,000 accounts receivable = 1,750 sales = 275,500 purchases = 18,000 merchandise inventory (31 Dec) = 19,275 accounts payable = 6,353 transportation-in = 2,300 prepaid insurance = 15,000 purchase discounts = 500 sales discounts = 750 purchase returns and allowances = 350 sales returns and allowances = 205 merchandise inventory (1 Jan) 40,000 depreciation expense delivery equipment = 4,500 wages expense = 46,500 supplies = 2,450 capital = 278,346