Question - The Rupina Company had the following Sales and Expenses during its first year of operations:
Purchases $50,000
Freight in $15,000
Sales $155,000
Advertising $25,000
Salaries - Sales staff $82,000
Property Taxes - Store $7,500
Insurance - Store $12,000
Merchandise Inventory, year end $22,000
Given the above information, determine Rupina's gross margin for the year. Note that since this was the company's first year of operations, beginning inventory was zero.