pps D Freedom FM-106.… Home Decorators L Salvatoro Forragam ( ) WIlliamsburg Rea

Question

pps D Freedom FM-106.… Home Decorators L Salvatoro Forragam ( ) WIlliamsburg Real G partial list The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. dvertising Expense Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent Expense nterest Expense Sales Revenue Sales Discounts Sales Returns and Allowances $10,600 88,500 4,300 900 7,600 10,100 1,300 161,900 9,600 17,600 Required: a. Prepare a multistep income statement Mulberry Street S Inçome Statement For the year ended December 31 4 FS 8

Explanation / Answer

MULBERRY STREET SPORTSWEAR MULTIPLE INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 PARTICULARS AMOUNT AMOUNT Sales Revenue $            1,61,900 Less: Sales Discounts $                  9,600 Less: Sales returns and allwoance $                17,600 Net Sales $    1,34,700 Less: Cost of Goods sold $        88,500 Gross Profit $        46,200 Less: Operating Expenses Advertising Expenses $                10,600 Delievery expenses $                  4,300 Insurance Expenses $                      900 Rent Expenses $                10,100 $        25,900 Operating income $        20,300 Non-Operating and others interest Expenses $        -1,300 Net Income before Taxes $        19,000 Less : IncomeTaxes $          7,600 Net income after Taxes $        11,400 Answer = 2 CALCULATION OF GROSS PROFIT PERCENTAGE Gross porfit % = Gross profit / Net Sales Gross Profit = $                46,200 Divide By "/" By   Net Sales $            1,34,700 Gross porfit % =                    0.3430 Gross porfit % = 34.30%

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