Question

prepare a multistep income statement

Quiz 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 $11,100 88,300 4,100 9ee 5,96€ 12, eee 1,300 168,90€ 9,800 18,5ee Required: a. Prepare a multistep income statement. b. Compute the gross profit percentage. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a multistep income statement Mulberry Street Sportswear Income Statement For the Year Ended December 31

Answer 1

16 - Solution Income statement 1 Revenue sales Revenue $160,900 Sales Discounts $9,800 sales Returns and allowances $ 18,500 Net sales revenue $ 189,200 cost of goods sold $88,300 | Gooss margin (189,200 -88,300 $ 100,900 Expenses: — Advertising expense $11,100 Rellery expense $4,100 Insurance expense 3900 Income tax expense $5,960 Rent expense $ 12,000 Internal expense $ 1,300 Net Pincome (100,900-35,360) $65,540 O Gross profit - Gooss margin . $100,900 Net sales Revenue $ 189,200 = 53.33%)