Partial Income Statement—Periodic System LaPine Company has the following account balances as of December 31, 2010:

Purchase returns and allowances $ 400 Inventory, January 1 4,000 Sales 80,000 Transportation-in 1,000 Sales returns and allowances 500 Purchase discounts 800 Inventory, December 31 3,800 Purchases 30,000 Sales discounts 1,200 Required Prepare a partial income statement for LaPine Company for 2010 through gross profi t.

Calculate LaPine’s gross profi t ratio for 2010.

AppendixLO1