Determining gross profitDuring the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000.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 always report a operating income? Explain.

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A:

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A: Gross profit = Sales -  Cost of goods sold

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A: Formula: Gross profit = Sales - Cost of goods sold

Q: Determining gross profitDuring the current year, merchandise is sold for $31,850,000. The cost ofthe…

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Q: 0,000. The cost of the goods sold is $4,698,000. a.  What is the amount of the gross profit? $

A: a) Amount of gross profit= Sales - Cost of goods sold= $8,100,000 - $4,698,000= $3,402,000

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A: Step 1: Compute the gross profit as follows:

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A: Computation of the Net sales, cost of goods sold and Net Income are as follows :

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Q: Determining gross profitDuring the current year, merchandise is sold for $ 11,750,000. The cost of…

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Q: Using the following information, what is the amount of gross profit? Purchases $ 30,526   Selling…

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Q: Determining Gross Profit During the current year, merchandise is sold for $31,850,000. The cost of…

A: Meaning of Gross Profit Gross profit is refer as the profit of the company which is computed after…