Requirement 1. Prepare the multi-step income statement for January for Checker F

Question

Requirement 1. Prepare the multi-step income statement for January for Checker Flag Auto, Inc.
Requirement 2. Calculate the gross profit percentage for January for Checker Flag Auto, Inc.
Requirement 3. What does Checker Flag Auto, Inc's gross profit percentage mean? (Click the icon to view the adusted trial balance.) Requirements 1. Prepare the multi-step income statement for January for Checker Flag Auto, Inc. 2. Calculate the gross profit percentage for January for Checker Flag Auto, Inc 3. What does Checker Flag Auto, Inc.'s gross proft percentage mean? Requirement 1. Prepare the multi-step income statement for January for Checker Flag Auto, Inc Checker Flag Auto, Inc Income Statement For the Month Ended January 31, 2016 Less Net income (loss) Requirement 2. Calculate the gross profit pencentage for January for Checker Flag Auto, Inc Start by determining the formula, then complete the calculation to determine gross profit percentage for the month. (Enter your answer as a percent rounded to the nearest tenth of a percent, XX%.) Gross profit percentage Requirement 3. What does Checker Flag Auto, Inc.'s gross profit percentage mean? (Enter the amount to one decimal place, X.X.) Checker Flag Auto, Inc's gross margin percentage means that each dollar of generatescents of that is used to cover and to generate Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

Multistep income statement Sales revenue 197500 Sales return and allowance -8800 Sales discount -3500 Net sales 185200 Less Cost of goods sold 102700 Gross profit 82500 Less Selling and admin expense Selling expense 43600 general expense 24300 67900 Net operating income 14600 Less Non operating expense Interest expense 550 Net income 14050 2 Gross profit percentage = Gross profit / net sales Gross profit 82500 Net sales 185200 Gross profit percentage 44.5% 3 That each dollar of sales generated 44.5% cents of gross profit that is used to cover operating and non operating expense

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