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22 March, 22:03

The following data were provided by Mystery Incorporated for the year ended December 31:

Cost of Goods Sold $ 164,000

Income Tax Expense 17,470

Merchandise Sales (gross revenue) for Cash 238,000

Merchandise Sales (gross revenue) on Credit 41,600

Office Expenses 18,900

Sales Returns and Allowances 6,990

Salaries and Wages Expense 39,800

Required:

1. Prepare a multistep income statement for internal reporting purposes.

What was the amount of gross profit?

2. What was the gross profit percentage? (Round your answer to 1 decimal place.)

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Answers (1)
  1. 22 March, 22:22
    0
    Mystery Incorporation

    Multi step Income Statement

    For the year ended December 31

    Merchandise Sales (gross revenue) for Cash 238,000

    Merchandise Sales (gross revenue) on Credit 41,600

    Less Sales Returns and Allowances 6,990

    Net Sales $ 272,610

    Less Cost of Goods Sold $ 164,000

    Gross Profit $ 108,610

    Less Salaries and Wages Expense 39,800

    Office Expenses + 18,900 = 58,700

    Income Before Tax 49,910

    Less Income Tax Expense 17,470

    Net Income 32,440

    Gross Profit Percentage = Gross Profit / Sales * 100

    Gross Profit Percentage = $ 108,610 / $ 272,610 * 100 = 39.840 = 39.8%
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