| Alignment Condition 1 u . E: Font X te Number , Formatting board | | f, | | No

Question

| Alignment Condition 1 u . E: Font X te Number , Formatting board | | f, | | Noodles Unlimited, Inc. sells sw : Account Titles Debits Credits $37,500 28,600 43,300 2,000 48,300 Cash Accounts Receivable Inventory Prepaid Rent Land Accounts Payable 8,800 20,000 75,000 31,800 175,500 Notes Payable 2 Common Stock 3 Retained Earnings, January 1, 20x1 4 Sales Revenue S Sales Returns and Allowances 6 Sales Discounts 17 Cost of Goods Sold 18 Salaries and Wages Expense 19 Utility Expense 20 Rent Expense 21 Interest Expense 4,700 6,000 67,700 25,900 13,800 24,000 1,600 Prev

Explanation / Answer

Answer: Noodles Unlimited, Inc Income Statement For the year ended December 31, 20X1 Sales Revenue 175500 Less: Sales return and allowances $        4,700.00 Sales discount $        6,000.00 Net Sales 164800 ($175,500-4,700-6,000) Less: Cost of goods sold $     67,700.00 Gross margin $     97,100.00 ($164,800-67,700) Expenses: Salaries and wages expense $     25,900.00 Utility Expense $     13,800.00 Rent Expense $     24,000.00 Income from operation $     33,400.00 ($97,100-25,900-13,800-24,000) Less: Interest Expense $        1,600.00 Income before Income Tax Expense $     31,800.00 (33,400-1,600) Less: Income tax Expense $        7,700.00 Net Income $     24,100.00 (31,800-7,700) Requirement 3 Gross margin percentage =Gross margin*100/Net sales =$97,100*100/164,800 58.92%

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