Presented below are the components in Clearwater Company’s income statement.

Determine the missing amounts.

Regis Co. has sales revenue of $109,000, cost of goods sold of $70,000, and operating expenses of $23,000.

What is its gross profit and its gross profit rate?

Kathy Ho Company reports net sales of $800,000, gross profit of $570,000, and net income of $240,000.

What are its operating expenses?

Identify the distinguishing features of an income statement for a merchandising company.

Identify the sections of a multiple-step income statement that relate to

(a) operating activities, and

(b) nonoperating activities.

How does the single-step form of income statement differ from the multiple-step form?

pepsico Determine PepsiCo’s gross profit rate for 2010 and 2009. Indicate whether it increased or decreased from 2009 to 2010.

Identify the accounts that are added to or deducted from Purchases to determine the cost of goods purchased.

For each account, indicate whether it is added or deducted.

Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, a

$200 credit was received from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system.

Indicate the columns of the worksheet in which

(a) inventory and

(b) cost of goods sold will be shown.

Compute missing amounts in determining net income.

LO 1 Sales Cost of Gross Operating Net ee Revenue Goods Sold Profit Expenses Income

(a) $75,000 2 $30,000 ? $10,800

(b) $108,000 $55,000 ? ? $29,500

(c) @ $83,900 $79,600 $39,500 2