Question
The following summarized data were provided by the records of Slate Inc. for the year ended December 31, 2020: Sales of merchandise for cash $
The following summarized data were provided by the records of Slate Inc. for the year ended December 31, 2020: Sales of merchandise for cash $ 220,000 Sales of merchandise on credit 32,000 Cost of sales 147,000 Selling expenses 40,200 Administrative expenses 19,000 Sales returns and allowances 7,000 Bad debt expense 800 Items not included in the above amounts: Average income tax rate, 30% Number of common shares outstanding, 5,000 Required:
1. Based on these data, prepare a multiple-step statement of earnings (showing both gross profit/(loss) and earnings from operations). (Round "Earnings per share" to 2 decimal places.)
2. Compute the amount of gross profit/(Loss) and the gross profit/(loss) percentage. (Round percentage answer to the nearest whole percent (i.e., 0.124 should be entered as 12).)
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