***PLEASE DO ALL THE QUESTIONS*** Cherokee Inc. is a merchandiser that provided
ID: 2411507 • Letter: #
Question
***PLEASE DO ALL THE QUESTIONS***
Cherokee Inc. is a merchandiser that provided the following information 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 13,000 $15.00 1.00 $1.00 $ 20,000 $ 13,000 $12,000 $ 23,000 $ 88,000 Required 1. Prepare a traditional income statement. CHEROKEE, INC Traditional Income Statement Selling and administrative expenses:Explanation / Answer
Traditional Income Statement Sales revenue (13000 units @ 15) 195000 Less: Cost of Goods sold Beginning inventory 12000 Add: Purchase 88000 Less: Ending Inventory 23000 Cost f goods sold 77000 Gross margin 118000 Selling and admin expense Vvariable selling exp (13000*1). 13000 Fixed selling expense 20000 variable Admin expense (13000*1) 13000 Fixed Admin expense 13000 Net Income 59000 Contribution margin Income Statement: Sales revenue 195000 Variable expense Cost fo goods sold 77000 Variable selling expensee 13000 Variable admin expense 13000 Contribution 92000 Fixed cost Selling expense 20000 Admin expense 13000 Net Income 59000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.