gertz - The adjusted trial balance of Gertz Company...

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The adjusted trial balance of Gertz Company included the following selected accounts: Debit Credit Sales $575,000 Sales Returns and Allowances $ 50,000 Sales Discounts 9,500 Cost of Goods Sold 347,000 Freight-out 2,000 Advertising Expense 15,000 Interest Expense 19,000 Store Salaries Expense 74,000 Utilities Expense 18,000 Depreciation Expense 3,500
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Interest Revenue 25,000 Instructions (1). Use the above information to prepare a multiple-step income statement for the year ended December 31, 2007. (2). Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings 1. GERTZ COMPANY Income Statement For the Year Ended December 31, 2007 Sales . ................................................................... $575,000 Less: Sales Returns and Allowances . .............................. $ 50,000 Sales Discounts . .................................................... 9,500 59,500 Net Sales . ................................................................... 515,500
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This note was uploaded on 12/12/2011 for the course ECONOMIC acc 101 taught by Professor Xyz during the Spring '11 term at University of Phoenix.

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gertz - The adjusted trial balance of Gertz Company...

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