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Problem -
1. Determining gross profit - During 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).
2. Determining cost of goods sold - During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. Will the income statement always report a operating income? Explain.
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