Response to the following problem:
The following balances are taken from the records of Mohan Corp. at December 31, 2016, its first year-end:
Transportation-in $ 500
Delivery expense 1,200
Sales 25,000
Purchases 20,000
Sales returns and allowances 2,000
Purchase returns and allowances 1,000
Sales Discounts 400
Purchase discounts 300
Interest expense 4,000
The inventory at December 31, 2016 amounted to $7,900.
Required:
1. Calculate the gross profit.
2. What is the gross profit percentage?