Selected accounts and other information from the records of Calderone Company for the year ended December 31 follow:

1. Compute the following items that would appear on a classified income statement. The company combines both selling and general and administrative expenses into a single line, Operating Expenses.
a. Net sales
b. Cost of goods sold
c. Gross profit
d. Operating expenses
e. Net income from operations
f. Other income, net
g. Net income for year

2. Prepare a summarized income statement for Calderone Company for the current year. Use the condensed income statement following Objective 13-1 as an example.
3. Compute the following ratios:
a. Gross profit percentage
b. Inventory turnover

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Merchandise Inventory, January 1 Merchandise Inventory, December 31 Sales Returns and Allowances Store Supplies Expense Sales Salaries Expense Sales Purchases Rent Expense Sales Commissions Expense Freight In Purchases Discounts Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Utilities Expense Office Salaries Expense Interest Expense Interest Income $ 20,000 22,000 1,000 3,000 30,000 218,000 50,000 37,000 4,200 1,500 400 3,000 6,000 8,000 25,000 400 1,200