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 12,000 $ 16 $ 1 $ $ 18,000 $ 13,000 $ 12,000 $ 25,000 $ 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales A 192,000 Cost of goods sold 73,000 Gross loss (119,000) Selling and administrative expenses: Selling expenses Administrative expenses 0 Net operating loss Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Inc. Contribution Format Income Statement Variable expenses 0 Fixed expenses 0 Prepare a contribution format income statement. Cherokee, Inc. Contribution Format Income Statement Sales Variable expenses Cost of goods sold Selling expenses Administrative expenses 0 Contribution margin Fixed expenses Selling expenses Administrative expenses Net operating income