(Answered) Question - the owner of a local souvenir shop in murrells

Accounting

Question - The owner of a local souvenir shop in Murrells Inlet 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 the following information:

Merchandise Inventory - end of year $20,000

Purchases $100,000

Freight - in $4,000

Sales $200,000

Property Taxes - Store $8,000

Depreciation - Store $25,000

Insurance - Store $7,000

Salary - Sales Staff $20,000

Advertising $5,000

What is the gross margin?

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