The following is a listing 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:
a. Prepare a multistep income statement. Include all operating expenses in one line item called “Selling, General and Administrative Expenses” and all non-operating revenues(expenses) in one line item called “Other Revenue (Expenses), net”.
b. Compute the gross profit percentage.
