4. A cash payment ot $20 for treight on merchandise purchases was debited to Freight- Out $200 and credited to Cash $200. Prepare separate correcting entries for each error, assuming that the incorrect entry is ne reversed. (Omit explanations.) Instructions E5-12 In 2017, Laquen Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and interest expense was $11,000. Laquen prepares a multiple-step income statement. Instructions (a) Compute Laquen's gross profit. (b) Compute the gross profit rate. Why is this rate computed by financial statement (c) What is Laquen's income from operations and net income? (d) If Laquen prepared a single-step income statement, what amount would it report for users? net income? (e) In what section of its classified balance sheet should Laquen report inventory? E5-13 Presented below is financial information for two different companies Summer Compan Winter Company Sales revenue Sales returns Net sales Cost of goods sold Gross profit $92,000 (a $ 5,000 102,000 56,000