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a) Using the accounts below as appropriate, produce a complete Multi-step Income Statement. Remember to label every number. b) Calculate the Gross Profit ratio and
a) Using the accounts below as appropriate, produce a complete Multi-step Income Statement. Remember to label every number. | ||
b) Calculate the Gross Profit ratio and the Profit Margin ratio. | ||
Hint: not all of the accounts below are needed. | ||
Account | General Ledger Balance | |
Accounts Receivable | $ 2,500,000 | |
Cost of goods sold | 35,000,000 | |
Depreciation expense | 1,750,000 | |
Gain on sale of land | 2,500,000 | |
General and Administrative Expenses | 5,000,000 | |
Interest Income | 3,500,000 | |
Interest Expense | 6,000,000 | |
Inventory | 7,000,000 | |
Land | 100,000,000 | |
Common Stock (2 million shares outstanding) | 40,000,000 | |
Sales Revenue | 70,000,000 | |
Selling Expenses | 12,500,000 | |
Income Tax Expense | 4,725,000 | |
Prepaid Expenses | 1,500,000 | |
Unearned Revenue | 1,000,000 |
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