Cherokee Incorporated is a merchandiser that provided the following information:

Amount Number of units sold 12,000 Selling price per unit $ 17 Variable selling expense per unit $ 1 Variable administrative expense per unit $ 2 Total fixed selling expense $ 22,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 8,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 88,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Selling and administrative expenses: 0 Required 1 Required 2 > Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Administrative expenses Beginning merchandise inventory Cost of goods sold Direct labor Direct materials Ending merchandise inventory 0 Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Ending merchandise inventory Fixed manufacturing overhead Indirect labor Indirect materials Manufacturing overhead Purchases 0 Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Manufacturing overhead Purchases Sales Selling expenses Variable manufacturing overhead 0 Required 1 Required 2 > Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Cel condadministrative annonces Gross margin Gross loss 0 Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Selling and administrative expenses: 0 Net operating income Net operating loss Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Variable expenses: 0 Fixed expenses: 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement War Administrative expenses Beginning merchandise inventory Cost of goods sold same as before Direct labor Direct materials 0 Ending merchandise inventory Fixed expenses: 0 Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Variable expenses: 0 Contribution margin Contribution loss 0 Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement Variable expenses: 0 Fixed expenses: 0