1. The Cost of Goods Sold section is the only difference between a multiple-step Income Statement under a perpetual inventory system and a multiple-step Income Statement under a periodic inventory system. 2. The format of the Cost of Goods Sold section of a merchandising multiple-step Income Statement for a company for the year ended December 31, 2020 using a periodic inventory system (Mlustration 5-15) will be Cost of goods sold: Inventory, January 1, 2020 Sxx Purchases Sxx Less purchase returns and allowances (xx) Less purchase discounts (6) Add freight-in Cost of goods purchased Cost of goods available for sale Less inventory, December 31, 2020 Cost of goods sold Sxx XX XOX err. eng. Study Example of Merchandising Income Statement - Periodic Inventory System under the Chapter 5 Module on Canvas. ar 4. What is the formula for calculating the gross profit rate? 5. What is a reason for a decrease in a company's current year's gross profit rate as compared to the previous year's gross profit rate? 6. What is the formula for calculating profit margin? 7. What are two ways a company can increase its profit margin? . B