Question

need help in income statement and gross peofit

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 Cost of Goods Sold Delivery Expense Insurance Expense Income Tax Expense Rent Expense Interest Expense Sales Revenue Sales Discounts Sales Returns & Allowances $11,500 88,200 5,100 900 5,640 11,200 1,500 161,200 10,700 18,000

Answer 1

Solution 1:

Mulberry Street Sportswear
Income Statement
Particulars	Amount
Sales revenue	$161,200.00
Less: Sales discount	$10,700.00
Less: Sales returns and allowances	$18,000.00
Net sales	$132,500.00
Cost of goods sold	$88,200.00
Gross profit	$44,300.00
Operating expenses:
Advertising expense	$11,500.00
Delivery expense	$5,100.00
Insurance expense	$900.00
Rent expense	$11,200.00
Interest expense	$1,500.00
Income before taxes	$14,100.00
Income tax expense	$5,640.00
Net income	$8,460.00

Solution 2:

Gross profit percentage = Gross profit / Net sales = $44,300 / $132,500 = 33.4%