Question: OBJ. 1 During the current year, merchandise is sold for $4,885,000. The cost of the merchandise sold is $3,028,700. What is the amount of the

OBJ. 1

During the current year, merchandise is sold for $4,885,000. The cost of the merchandise sold is $3,028,700.

What is the amount of the gross profit?

Compute the gross profit percentage (gross profit divided by sales).

Will the income statement necessarily report a net income? Explain.

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