Item a: The adjusted trial balance of Entity B included the following selected accounts: Credit Debit Sales Revenue Sales Returns and Allowances Sales Discounts 18,500 Cost of Goods Sold Freight-Out Advertising Expense 1. 7,000 $900,000 Depreciation Expense Income tax expense Dividend Revenue 376,425 35,000 Interest Expense 22,000 Salaries and Wages Expense Rent Expense 120,000 12,000 40,000 $ 45,000 125,000 45,000 Instructions Use the above information to prepare a multiple-step income statement for the year ended December 31, 2024. 2. Calculate the profit margin and gross profit rate. 3. Suggest three ways that either the gross profit rate or profit margin might be increased. Item b: Entity C sold Entity D $15,000 of merchandise, terms 2/10, net 30. Entity C paid $5,000 for the merchandise. Instructions 1. Journalize the sale on Entity C's books. 2. If Entity D returned $3,000 of the merchandise, and paid for the remainder 9 days from the date of the sales invoice, how much did Entity D remit (pay) Entity C?

Item a: The adjusted trial balance of Entity B included the following selected accounts: Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2024. 2. Calculate the profit margin and gross profit rate. 3. Suggest three ways that either the gross profit rate or profit margin might be increased. Item b: Entity C sold Entity D \$15,000 of merchandise, terms 2/10, net 30 . Entity C paid $5,000 for the merchandise. Instructions 1. Journalize the sale on Entity C's books. 2. If Entity D returned $3,000 of the merchandise, and paid for the remainder 9 days from the date of the sales invoice, how much did Entity D remit (pay) Entity C? Item a: The adjusted trial balance of Entity B included the following selected accounts: Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2024. 2. Calculate the profit margin and gross profit rate. 3. Suggest three ways that either the gross profit rate or profit margin might be increased. Item b: Entity C sold Entity D \$15,000 of merchandise, terms 2/10, net 30 . Entity C paid $5,000 for the merchandise. Instructions 1. Journalize the sale on Entity C's books. 2. If Entity D returned $3,000 of the merchandise, and paid for the remainder 9 days from the date of the sales invoice, how much did Entity D remit (pay) Entity C