The following information is taken from the records of Smith Corp. at June 30, 2016, the fiscal year-end:
Advertizing expense $1,500
Commissions expense 4,000
Cost of goods sold 50,000
Delivery expense 1,000
Insurance expense 1,000
Rent expense 2,500
Salaries expense 5,000
Sales (gross) 72,000
Sales returns and allowances 2,000
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.