A company reports the following account balances at year-end:
|
Account
|
Balance
|
|
Long-term debt
|
$200,000
|
|
Cash
|
50,000
|
|
Net sales
|
600,000
|
|
Fixed assets (net)
|
320,000
|
|
Tax expense
|
67,500
|
|
Inventory
|
25,000
|
|
Common Stock
|
100,000
|
|
Interest expense
|
20,000
|
|
Administrative expense
|
35,000
|
|
Retained earnings
|
150,000
|
|
Accounts payable
|
65,000
|
|
Accounts receivable
|
120,000
|
|
Cost of goods sold
|
400,000
|
|
Depreciation expense
|
10,000
|
|
|
|
Additional Information:
|
|
The opening balance of common stock was $100,000
|
|
The opening balance of retained earnings was $82,500
|
|
The company had 10,000 common shares outstanding all year
|
|
No dividends were paid during the year
|
For the year just ended, Calculate the company has gross margin.