Ex. 211
Presented below is information for Pryor Company for the month of March 2014.
Cost of goods sold€242,000Rent expense€ 30,000
Freight-out7,000Sales discounts8,000
Insurance expense17,000Sales returns and allowances13,000
Salaries and wages expense63,000Sales revenue410,000
Instructions
(a)Prepare an income statement.
(b)Compute the gross profit rate.
Ex. 212
Instructions
State the missing items identified by ?.
1. Gross profit – Operating expenses = ?
2. Cost of goods sold + Gross profit on sales = ?
3. Sales revenue – (? + ?) = Net sales
4. Income from operations + ? – ? = Net income
5. Net sales – Cost of goods sold = ?