Exercise 5-07

Presented below is information for Lieu Co. for the month of January 2022.

Cost of goods sold		$212,040		Rent expense		$32,000
Freight-out		7,000		Sales discounts		8,000
Insurance expense		12,000		Sales returns and allowances		20,000
Salaries and wages expense		60,000		Sales revenue		370,000
Income tax expense		5,280		Other comprehensive income (net of $400 tax)		2,000

a. Prepare an income statement using the multiple-step format.

b. Prepare a comprehensive income statement.

c. Calculate the profit margin and the gross profit rate