Cherokee Inc. is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount 20,000 $ 30 $ 4 $ 2 $ 40,000 $ 30,000 $ 24,000 $ 44,000 $ 180,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales $ 600,000 160,000 440,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Ending merchandise inventory Administrative expenses Ending merchandise inventory Net operating income X 120,000 70,000 190,000 $ 250,000 Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Inc. Contribution Format Income Statement Sales $ 600,000 Variable expenses: Cost of goods sold 160,000 Selling expenses 80,000 Administrative expenses 40,000 Ending merchandise inventory Purchases 280,000 Contribution margin 320,000 Fixed expenses: Selling expenses Administrative expenses X 40,000 Administrative expenses 30,000 Fixed manufacturing 70,000 overhead Net operating income $ 250,000