Instructions

Prepare the sales section of the income statement.

E$5\mathrm{.}7($LO $4,6),$ AP Presented below is information for Lieu Co$.$ for the month of January $2022.$

Prepare an income statement, a comprehensive income statement, and calculate profitability ratios.

Cost of goods sold

Freight$-$out

Insurance expense

Salaries and wages expense

Income tax expense

Instructions

a$.$ Prepare an income statement using the format presented in Illustration $5\mathrm{.}12.$

b$.$ Prepare a comprehensive income statement.

c$.$ Calculate the profit margin and the gross profit rate.