- Prepare and analyze a merchandiser's multi-step income statement.
D E 1 Noodles Unlimited, Inc. sells swimming pool toys. The following adjusted trial balance 2 is for the year ended December 31,20X1. 3 Debits Credits Account Titles 4 $37,500 28,600 43,300 Cash Accounts Receivable Inventory 7 Prepaid Rent Equipment 10 Accumulated Depreciation Accounts Payable 12 Unearned Fees 13 Long-term Notes Payable 14 J. Noodle, Capital 15 Sales Revenue 2,000 8 69,000 $20,700 8,800 20,000 75,000 31,800 175,500 11 Sales Returns and Allowances 4,700 16 6,000 67,700 25,900 Sales Discounts 17 Cost of Goods Sold 18 Salaries and Wages Expense 20 Depreciation Expense Rent Expense Interest Expense 19 13,800 24,000 1,600 21 22 Loss on Sale of Equipment 7,700 23 $331,800| $331,800 Totals 24 Sheet1 READY 100% Attempt(s) Hint 26 Required: 27 1. Prepare a multistep income statement that would be used for internal reporting purposes. 28 Note When more than one correct account could appear in a cell, list items in order of largest to 29 smallest dollar amounts. Use cell referencing to select account titles and values 30 All numbers should appear as positive numbers. 31 2. After entering the formula in cell B52, use the Excel IF function to label cell A52 as either 32"Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52. 34 NOODLES UNLIMITED Income Statement 35 36 For the Year Ended December 31,20X1 37 38 Less 39 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 45 46 47 48 Income from Operations 49 Other Expenses and Losses 50 51 52 53 3. Compute the gross profit percentage. Note: Make sure to include *100 at the end of your formula in order to convert the decimal to a percentage Gross Profit Percentage percent D E 1 Noodles Unlimited, Inc. sells swimming pool toys. The following adjusted trial balance 2 is for the year ended December 31,20X1. 3 Debits Credits Account Titles 4 $37,500 28,600 43,300 Cash Accounts Receivable Inventory 7 Prepaid Rent Equipment 10 Accumulated Depreciation Accounts Payable 12 Unearned Fees 13 Long-term Notes Payable 14 J. Noodle, Capital 15 Sales Revenue 2,000 8 69,000 $20,700 8,800 20,000 75,000 31,800 175,500 11 Sales Returns and Allowances 4,700 16 6,000 67,700 25,900 Sales Discounts 17 Cost of Goods Sold 18 Salaries and Wages Expense 20 Depreciation Expense Rent Expense Interest Expense 19 13,800 24,000 1,600 21 22 Loss on Sale of Equipment 7,700 23 $331,800| $331,800 Totals 24 Sheet1 READY 100% Attempt(s) Hint 26 Required: 27 1. Prepare a multistep income statement that would be used for internal reporting purposes. 28 Note When more than one correct account could appear in a cell, list items in order of largest to 29 smallest dollar amounts. Use cell referencing to select account titles and values 30 All numbers should appear as positive numbers. 31 2. After entering the formula in cell B52, use the Excel IF function to label cell A52 as either 32"Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52. 34 NOODLES UNLIMITED Income Statement 35 36 For the Year Ended December 31,20X1 37 38 Less 39 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 45 46 47 48 Income from Operations 49 Other Expenses and Losses 50 51 52 53 3. Compute the gross profit percentage. Note: Make sure to include *100 at the end of your formula in order to convert the decimal to a percentage Gross Profit Percentage percent
