During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000. a. What is the amount of the gross profit?

During the current year, merchandise is sold for $11,750,000. The  is $7,050,000.

a. What is the amount of the gross profit?

$

b. Compute the gross profit percentage (gross profit divided by ). Round to the nearest whole number.

   %

c. When will the income statement report net income?

• f operating expenses are less than gross profit.
• If gross profit is positive.
• If operating expenses are more than gross profit.
• If revenues exceed cost of sales.
• None of these choices.