Exercise 5-9

Presented below is information for Kaila Company for the month of March 2017.

Cost of goods sold		$230,170		Rent expense		$ 32,270
Freight-out		6,080		Sales discounts		8,190
Insurance expense		5,230		Sales returns and allowances		12,200
Salaries and wages expense		56,720		Sales revenue		389,630

Prepare a multiple-step income statement.

KAILA COMPANY Income Statement March 31, 2017For the Month Ended March 31, 2017For the Year Ended March 31, 2017
DrawingsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31Sales RevenuesTotal RevenuesNet SalesGross Profit / (Loss)Operating ExpensesTotal Operating Expenses
			$
LessAdd :
		$
Drawings Net Income / (Loss) Owner's Capital, March 1 Owner's Capital, March 31 Sales Revenues Total Revenues Net Sales Gross Profit / (Loss) Operating Expenses Total Operating Expenses
DrawingsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31Sales RevenuesTotal RevenuesNet SalesGross Profit / (Loss)Operating ExpensesTotal Operating Expenses
DrawingsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31Sales RevenuesTotal RevenuesNet SalesGross Profit / (Loss)Operating ExpensesTotal Operating Expenses
Drawings Net Income / (Loss) Owner's Capital, March 1 Owner's Capital, March 31 Sales Revenues Total Revenues Net Sales Gross Profit / (Loss) Operating Expenses Total Operating Expenses
Drawings Net Income / (Loss) Owner's Capital, March 1 Owner's Capital, March 31 Sales Revenues Total Revenues Net Sales Gross Profit / (Loss) Operating Expenses Total Operating Expenses			$

LINK TO TEXT

Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 25.20%.)

Gross profit rate

%