Computing merchandising amounts and formatting income statements LO1 LO2 White Compan...

Computing merchandising amounts and formatting income statements LO1 LO2

White Company’s adjusted trial balance on March 31, 2010, its fiscal year-end, follows.

On March 31, 2009, merchandise inventory was $37,500.

Required

1. Calculate the company’s net sales for the year.

2. Calculate the company’s total cost of net purchases for the year.

3. Prepare a multiple-step income statement that includes separate categories for selling expenses and

for general and administrative expenses.

4. Prepare a single-step income statement that includes these expense categories: cost of goods sold,

selling expenses, and general and administrative expenses.

Check (2) $134,600

(3) Gross profit, $191,175;

Net income, $55,175

(4) Total expenses, $251,600