Question

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.


Advertising Expense $ 12,000
Cost of Goods Sold 89,000
Delivery Expense 6,000
Insurance Expense 1,000
Income Tax Expense 2,000
Rent Expense 12,000
Interest Expense 5,000
Sales Revenue 160,000
Sales Discounts 11,000
Sales Returns & Allowances 19,000

Required:

Part a. Prepare a multistep income statement.

Part b. Compute the gross profit percentage.

Answer

This answer is hidden. It contains 612 characters.