The owner of a local souvenir shop in garden city beach is

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Reference no: EM13600620

The owner of a local souvenir shop in Garden City Beach is in the process of preparing an income statement at the end of the first year of operation. Because it is the first year of operation, there was no inventory at the beginning of the year. Given below is certain financial information for the period.

Merchandise Inventory- year-end $25,000
Purchases $120,000
Freight -in $5,000
Sales $225,000
Property Taxes - Store $10,000
Depreciation - Store $20,000
Insurance - StaStore $8,000
Salary - Sales ff $20,000
Advertising $6,000

In an attempt to evaluate how well she is doing she would like to calculate her Gross Profit or Margin for the year. Sketching out an income statement may help you arrive at this value. What is the Gross Margin?

Reference no: EM13600620

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