1. Solve the following problem. Enter your answers in the blanks provided. Give dollar amounts to the nearest dollar and percents to the nearest tenth.

Compute operating expenses.

Delivery expense	$180
Depreciation expenseequipment	2,500
Payroll taxes expense	311
Salary expense	4,800
Supplies expense	150
Telephone expense	280
Utilities expense	590
Miscellaneous expense	175
Total operating expenses	$

2. Solve the following problem. Enter your answers in the blanks provided. Give dollar amounts to the nearest dollar and percents to the nearest tenth.

Compute the total operating expenses and net profit before taxes for Thomas Harden, D.D.S., for the first quarter of the year.

Thomas Harden, D.D.S.
INCOME STATEMENT
For the quarter ending March 31, 20--
Revenue
Professional fees		$128,000
Operating expenses
Depreciation expenseequipment	$6,500
Miscellaneous expense	1,900
Payroll taxes expense	5,113
Automobile expense	960
Rent expense	7,000
Salary expense	42,000
Supplies expense	3,100
Utilities expense	2,380
Total operating expenses		$
Net profit before federal income tax		$

3. Solve the following problem. Enter your answers in the blanks provided. Give dollar amounts to the nearest dollar and percents to the nearest tenth.

Create a vertical analysis of an income statement. Find the percent of each item based on net sales for this partial income statement. Make your percents accurate to 1 decimal place. Enter your answers in the blanks provided.

The Fashion Place
INCOME STATEMENT
For the period ending June 30, 20--
	Amount	Percent
Revenue
Sales	$386,000	%
Less: Sales returns and allowances	5,840	%
Net sales	$380,160	%
Cost of goods sold
Merchandise inventory, January 1, 20--	$220,000	%
Purchases less returns and allowances	39,200	%
Total cost of merchandise available for sale	$259,200	%
Less: Merchandise inventory, June 30, 20--	71,225	%
Cost of goods sold	$187,975	%
Gross profit	$192,185	%

4. Solve the following problem. Enter your answers in the blanks provided. Give dollar amounts to the nearest dollar and percents to the nearest tenth.

Compute the cost of goods sold.

Merchandise inventory, January 1, 20--			$56,000
Purchases		$18,000
Less: Purchases returns and allowances	$800
Less: Purchase discounts	350	$
Net purchases			$
Total cost of merchandise available for sale			$
Less: Merchandise inventory, March 31, 20--			$12,000
Cost of goods sold				$

5. Solve the following problem. Enter your answers in the blanks provided. Give dollar amounts to the nearest dollar and percents to the nearest tenth.

Compute net profit before federal income tax.

Gross profit	$88,500
Total operating expense	51,990
Net profit before federal income tax	$

Gross profit	$91,234
Total operating expenses	48,222
Net profit before federal income tax	$

Gross profit	$63,745
Total operating expenses	38,295
Net profit before federal income tax	$