Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $11,200 and Common Stock of $11,200 May 1 2 5 9 10 11 12 15 17 19 24 25 27 29 31 Purchased merchandise on account from Black Wholesale Supply for $7,900, terms 1/10, n/30 Sold merchandise on account for $4,800, terms 2/10, n/30. The cost of the merchandise sold was $3,600 Received credit from Black Wholesale Supply for merchandise returned $300 Received collections in full, less discounts, from customers billed on May 2 Paid Black Wholesale Supply in full, less discount. Purchased supplies for cash $1,260 Purchased merchandise for cash $4,340 Received $322 refund for return of poor-quality merchandise from supplier on cash purchase Purchased merchandise from Wilhelm Distributors for $2,750, terms 2/10, n/30 Paid freight on May 17 purchase $350 Sold merchandise for cash $7,700. The cost of the merchandise sold was $5,740 Purchased merchandise from Clasps Inc. for $1,120, terms 3/10, n/30 Paid Wilhelm Distributors in full, less discount. Made refunds to cash customers for returned merchandise $135. The returned merchandise had cost $90 Sold merchandise on account for $1,792, terms n/30. The cost of the merchandise sold was $1,162. Prepare an income statement through gross profit for the month of May 2017. (Round answers to 0 decimal places, e.g. 5,275.) WINTERS HARDWARE STORE Income Statement (Partial) Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,960.) (Round answers to 1 decimal place, e.g. 15.5%.) Profit margin Gross profit rate Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $11,200 and Common Stock of $11,200 May 1 2 5 9 10 11 12 15 17 19 24 25 27 29 31 Purchased merchandise on account from Black Wholesale Supply for $7,900, terms 1/10, n/30 Sold merchandise on account for $4,800, terms 2/10, n/30. The cost of the merchandise sold was $3,600 Received credit from Black Wholesale Supply for merchandise returned $300 Received collections in full, less discounts, from customers billed on May 2 Paid Black Wholesale Supply in full, less discount. Purchased supplies for cash $1,260 Purchased merchandise for cash $4,340 Received $322 refund for return of poor-quality merchandise from supplier on cash purchase Purchased merchandise from Wilhelm Distributors for $2,750, terms 2/10, n/30 Paid freight on May 17 purchase $350 Sold merchandise for cash $7,700. The cost of the merchandise sold was $5,740 Purchased merchandise from Clasps Inc. for $1,120, terms 3/10, n/30 Paid Wilhelm Distributors in full, less discount. Made refunds to cash customers for returned merchandise $135. The returned merchandise had cost $90 Sold merchandise on account for $1,792, terms n/30. The cost of the merchandise sold was $1,162. Prepare an income statement through gross profit for the month of May 2017. (Round answers to 0 decimal places, e.g. 5,275.) WINTERS HARDWARE STORE Income Statement (Partial) Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,960.) (Round answers to 1 decimal place, e.g. 15.5%.) Profit margin Gross profit rate
