Presented below is information for Yu Co. for the month of January 2012.

Instructions

(a) Prepare an income statement using the format presented on page 243. Assume a 25%
tax rate.

(b) Calculate the profit margin ratio and the gross profit rate.

Transcribed Image Text:

Cost of goods sold $212,000 Rent expense $32,000 Freight-out 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 20,000 Salaries and wages expense 60,000 Sales revenue 370,000