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

		Amount
Number of units sold		13,000
Selling price per unit	$	17
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	2
Total fixed selling expense	$	21,000
Total fixed administrative expense	$	14,000
Beginning merchandise inventory	$	9,000
Ending merchandise inventory	$	23,000
Merchandise purchases	$	89,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Salee; Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Net operating income Required 1 Required 2 >