Ex. 200
Presented below is information for Pryor Company for the month of March 2011.
Cost of goods sold$232,000Rent expense$ 30,000
Freight-out7,000Sales discounts8,000
Insurance expense12,000Sales returns and allowances13,000
Salary expense63,000Sales410,000
Instructions
(a)Prepare a multiple -step income statement.
(b)Compute the gross profit rate.
Ex. 201
In 2011, Rooney Company had net sales of $600,000 and cost of goods sold of $390,000. Operating expenses were $150,000, and interest expense was $10,000. Rooney prepares a multiple-step income statement.
Instructions
(a)Compute Rooney's gross profit.
(b)Compute the gross profit rate.
(c)What is Rooney's income from operations and net income?
(d)If Rooney prepared a single-step income statement, what amount would it report for net income?
Ex. 202
Hoyle Company gathered the following condensed data for the year ended December 31, 2011:
Cost of goods sold$ 740,000
Net sales1,350,000
Operating expenses279,000
Interest expense58,000
Dividend revenue38,000
Loss from employee strike233,000
Instructions
1.Prepare a single-step income statement for the year ended December 31, 2011.
2.Prepare a multiple-step income statement for the year ended December 31, 2011.