Please complete each of the four problems below using the information and data provided.

During the current year, merchandise is sold for $$3,750,000.$ The cost of the merchandise sold

is $$2,550,000.$

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.

$3-2$ For a recent year, Target Corporation reported revenue of $$69,865$ million. Its gross profit was

$$22,005$ million. What was the amount of Target's cost of merchandise sold?

$3-3$ The following data were extracted from the accounting records of Catz Company for the year

ended April $30,20$Y$2$:

a$.$ Prepare the cost of merchandise sold section of the income statement for the year ended

April $30,20$Y$2,$ using the periodic inventory system.

b$.$ Determine the gross profit to be reported on the income statement for the year ended April

$30,20Y2.$

a$.$

Catz Company cost of merchandise sold

b$.$

Catz Company gross profit

$3-4$ For the fiscal year, sales were $$12,140,000,$ sales discounts were $$250,000,$ sales returns and

allowances were $$80,000,$ and the cost of merchandise sold was $$7,000,000.$

a$.$ What was the amount of net sales?

b$.$ What was the amount of gross profit?

a$.$

amount of net sales

b$.$

amount of gross profit