Presented is information related to Gonzales Co. for the month of January 2001:

Instructions

(a) Prepare an income statement using the format presented on page 220. Operating expenses should not be segregated into selling and administrative expenses.

(b) Calculate these values: profit margin ratio, gross profit rate, and operating expenses to sales ratio.

Transcribed Image Text:

Cost of goods sold $208,000 Rent expense $ 20,000 Freight-out 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 13,000 Salary expense 61,000 Sales 350,000