Exercise 5-13 Adjusting entries and income statement-perpetual LO5 The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of Perdu Sales, a business that is owned by Eldon Perdu. Credit Debit $ 8,000 9,800 8,000 40,000 $ 9,800 14,840 Cash Merchandise inventory Prepaid selling expense Store equipnent Accunulated depreciation, store equipment Accounts payable Salaries payable Eldon Perdu, capital Eldon Perdu, withdrawals Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense, store Other selling expenses Other administrative expenses 3,600 25,360 858,000 33,000 8,000 431,000 94,000 12,600 70,000 190,000 Additional information: Accrued sales salaries amount to $3,200. Prepaid selling expenses of $5,200 have epired. Depreciation for the period is $2,500. Required: Assuming a perpetual inventory system, complete the following: b. Prepare a classified multiple-step income statement for the year ended December 31, 2020. Answer is not complete. PERDU SALES Income Statement For Year Ended December 31, 2020 Sales 858,000 Less: Sales returns and allowances Less: Sales discounts $ 33,000 8,000 Net sales 41,000 $ 817,000 431,000 Cost of goods sold >> > $ 386,000 Gross profit Operating expenses Selling expenses Sales salaries expense Utilities expense, store (Sales) Other selling expenses Other administrative expenses Depreciation expense, store equipment (Saloo) Other selling expenses Total selling expenses >>> + $ 97,200 12,600 5,200 x 190,000 $ 2,500 70,000 377.500 Tata AR AURAR 177 EM Utilities expense, store (Sales) Other selling expenses Other administrative expenses Depreciation expense, store equipment (Sales) Other selling expenses Total selling expenses 12,600 5,200 190,000 2,500 70,000 $ 377.500 Total operating expenses 377,500 Analysis Component: Assume that for the year ended December 31, 2019, net sales were $600,000; operating expenses were $344,000; and there was a loss of $14,000. Calculate the company's gross profit ratios for 2019 and 2020. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Answer is complete but not entirely correct. 2019 2020 Gross Profit 40.33 % % 47.25 %