Everything in red is incorrect, please help!! Exercise 5-6 Presented below is in

ID: 2539972 • Letter: E

Question

Everything in red is incorrect, please help!!

Exercise 5-6

Presented below is information for Lieu Co. for the month of January 2017.

Cost of goods sold $212,000 Rent expense $32,000 Freight-out 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 20,000 Salaries and wages expense 60,000 Sales revenue 370,000 Income tax expense 5,000 Other comprehensive income (net of $400 tax) 2,000 C ii Seoure https:/.edugen.wierplus.com.eduqen/t/manuni I, Accounting, Gc Exercise 5-6 Presented below is information for Licu Co. for the morth of Jonuary 2017 Cozt ot goods scld Freight-out salaries nd rasges expense u.uou sales revenue Income tx xpenee Chapter S Accapinent for Class Meeting 212,000 Rent cxpec $32,000 Brcbiam 5.34 Reviow Score obiertive 7,n0n Salas discounts 20,300 370,000 5,000 Other comprchanlc Inccma net ot $40o tax 2,000 Yaur answer is partially carrect. Try again Prepare a income statement using the multi-step furrnat 370000 Sales Discounts ross Prot lype here to search

Explanation / Answer

Answer

Sales:

Sales Revenue

370000

Sales Discounts

8000

Sales Return & Alowances

20000

28000

Net Sales

342000

Cost of Goods Sold

212000

Gross Profit

158000

Operating expenses:

Freight out

7000

Insurance expenses

12000

Salaries & Wages

60000

Rent expenses

32000

Total operating expenses

111000

Income before income tax

47000

Income tax expenses

5000

Net Income/ (lOss)

42000

Net Income/ (lOss)

42000

Other comprehensive income (loss)

2000

Comprehensive Income (Loss)

44000

Net Sales

$342000

$158000

GP rate

46.2%

Net Income

$44000

Profit margin rate

12.9%