Problem Sets

Prompts 3.1, 3.2, and 3.3 utilize the following information:

The following information is available for Quayle Company:

Sales revenue $618,000

Sales returns and allowances 20,000

Cost of goods sold 398,000

Operating expenses 114,000

Interest expense 19,000

Interest revenue 20,000

Prompt #3.1

Use the above information to prepare a multiple-step income statement for the year ended

December 31, 2022.

Prompt #3.2

Compute the gross profit margin.

Prompt #3.3

Compute Net Income as a Percentage of Gross Sales.