At the end of Ehlinger Department Store's fiscal year on December 31, 2012, these accounts appeared in its adjusted trial balance:
|
Freight-In
|
$ 7,200
|
|
Inventory (beginning)
|
40,500
|
|
Purchases
|
456,000
|
|
Purchase Discounts
|
12,000
|
|
Purchase Returns and Allowances
|
6,400
|
|
Sales Revenue
|
702,000
|
|
Sales Returns and Allowances
|
8,000
|
Note: Merchandise inventory on December 31, 2012, is $58,300.
Instructions
a) Prepare an income statement through gross profit for the year ended December 31, 2012.
b) What is the gross profit percentage?