The following information is taken from the records of O'Donnell Corp. at June 30, 2016, its fiscal year-end:
Advertizing expense
Commissions expense
Delivery expense
Insurance expense
Opening inventory
Purchases
Purchase returns and allowances
Rent expense
Salaries expense
Sales (gross)
Sales returns and allowances
Transportation-in
$ 1,500
4,000
1,000
1,000
6,000
35,000
2,000
2,500
5,000
72,000
2,000
1,000
The merchandize inventory at June 30, 2016 amounted to $10,000.
Required:
1. Prepare a classified income statement. Assume all expenses not related to cost of goods sold are selling expenses.
2. Compute gross profit percentage.