Question

Exercise 5-07 Presented below is information for Oriole Co. for the month of January 2022. Cost of goods sold Freight-out Insurance expense Salaries and wages expense $208,400 Rent expense 9,000 Sales discounts 14,400 Sales returns and allowances 62,700 Sales revenue 400 Other comprehensive income (net of $400 tax) $33,900 8,900 19,500 393,500 2.000 Income tax expense

Answer 1

Oriole co Income statement For the month January 31, 2022 Revenue: Sales Less: Sales returns and allowances Less: Sales Discounts 393500 19500 8900 28400 365100 2084001 156700 62700 33900 Net Sales Cost of goods sold Gross profit Expenses Salaries and wages expenses Rent expense Freight out Insurance expense Total Expenses Income before tax Income tax expenses Net Income 9000 14400 120000 36700 4400 32300

Oriole co Comprehensive Income Statement For the month January 31, 2022 Net Income Other Comprehensive income (net of$400 tax) Comprehensive Income 323001 2000 34300 Profit Margin = (Net Income / Net Sales) *100 Net Income 32300 Net Sales 365100 Profit margin 8.8 % Gross profit rate = (Gross profit/ Net Sales ) *100 Gross Profit 156700 Net Sales 365100 Gross profit rate 42.9 %