Cherokee Inc. is a merchandiser that provided the following information:

Question 1 (of 4) Exercise 2-6 Traditional and Contribution Format Income Statements [ 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 14,000 17 $ 22,000 $ 15,000 S 9,000 S 25,000 S 88,000 Required 1. Prepare a traditional income statement. CHEROKEE, INC Traditional Income Statement S 238,000 74,000 164,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Ending merchandise inventory 22,000 15,000 25,000 88,000 50,000 S 14,000 t operating income