Question
6 Prepare classified Income statement and compute the ratios based on the information provided below Beginning Inventory , January 1 $20,000 Ending Inventory , December
6 Prepare classified Income statement and compute the ratios based on the information provided below
Beginning Inventory , January 1 $20,000
Ending Inventory , December 31 $22,000
Sales Returns and Allowance $1,000
Store Supplies Expense $3,000
Sales Salaries Expense $30,000
Sales $218,000
Purchases $50,000
Rent Expense $37,000
Sales Commissions Expense $4,200
Freight In $1,500
Purchase Discounts $400
Depriciation Expense - Office Equipment $3,000
Depriciation Expense - Store Equipment $6,000
Utilities Expense $8,000
Office Salaries Expense $25,000
Interest Expense $400
Interest Income $1,200
Current Assets $276,000
Current liabilities $262,000
Accounts Receivable, begining $143,000
Accounts Receivable, ending $126,000
Compute in classified income statement
Peerless Training Institute Management Accounting
Date : September 30, 2021
1 Net Sales
2 Cost of Goods sold
3 Gross Profit
4 Operating Expenses
5 Net Income from Operations
6 Other income, net
7 Net Income for the year
Compute ratios 1 Gross profit Percentage
2 Inventory Turnover
3 Working Capital
4 Current Ratio
5 Accounts Receivable Turnover
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