BC Ltd. Has collected the following data and asks you to prepare the Income statement: Cost of Merchandise Sold $56,200 Machine Depreciation Expense $8,000 Income Tax Expense $6,960 Bank fees Expense $1,300 Insurance Expense $1,000 Utilities Expense $500 Gain from asset disposition $7,000 Sales Commisions Expense $20,000 Sales Revenue $100,000
Required 1: BC’s net income for the year must have been: $
Required 2: BC’s merchandising gross margin for the year must have been: $