can you help me with this :O Cherokee Inc. is a merchandiser that provided the f

Question

can you help me with this :O

Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise Inventory Merchandise purchases 11,000 17 $21,00e $ 15,000 $ 10,000 $ 22,800 $ 85,00e Required 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Answer is not complete Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses 87,000 73,000 114,000 Selling expenses Administrative expenses S 11,000 11,000 22,000

Explanation / Answer

Cherokee, Inc. Traditional Income Statement Amount in $ Sales 187000 Cost of goods sold 73000 Gross Margin 114000 Less : Selling and administrative expenses Selling expenses 32000 Administrative expenses 26000 Total Selling & administrative expenses 58000 Net Income 56000 Cherokee, Inc. Contribution format income statement Amount in $ Sales 187000 Less : Variable expenses Cost of goods sold 73000 Variable Selling expenses 11000 Variable Administrative expenses 11000 Total Variable expenses 95000 Contribution margin 92000 Less : Fixed expenses Fixed selling expenses 21000 Fixed Administrative expenses 15000 Total fixed expenses 36000 Net Income 56000 We appreciate the rating of our answers. If you find this answer useful, please do rate it. Thank you.

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