Question - The Golden Gate Company had the following Sales and Expenses during its first year of operations:
Freight in $30,000
Purchases $75,000
Advertising $35,000
Salaries - Sales staff $90,000
Sales $280,000
Property Taxes - Store $10,500
Insurance - Store $8,000
Merchandise Inventory, year end $55,000
Given the above information, determine Golden Gate's gross margin for the year. Note that since this was the company's first year of operations, beginning inventory was zero.