Reviewing the Income Statement (questions 18 – 20)
Vertikal SA imports and distributes climbing gear. Its profit and loss account for the year x5 has the following items (amounts in €000):
· Debits: interest expense of 10, salaries expenses of 80, depreciation expense of 20, cost of goods sold of 150, utilities expenses of 30, rent expense of 15, and tax expense of 20.
· Credits: sales revenues of 350, and gain on sale of office equipment of 5.
The net income is 30.
Compute the gross margin for x5.