Assume a 25 tax rate b calculate the profit margin

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Prepare an income statement using the format presented on page 245. Assume a 25% tax rate.(b) Calculate the profit margin and the gross profit rate.P5-5BAn inexperienced accountant prepared this condensed income statement for Wright Company, a retail firm that has been in business for a number of years.
Wright CompanyIncome StatementFor the Year Ended December 31, 2014RevenuesNet sales$952,000Other revenues16,000968,000Cost of goods sold 548,000Gross profit420,000Operating expensesSelling expenses160,000Administrative expenses104,000264,000Net earnings$156,000As an experienced, knowledgeable accountant, you review the statement and determine the following facts.1.Net sales consist of sales $972,000, less freight-out on merchandise sold $20,000. 2.Other revenues consist of sales discounts $12,000 and interest revenue $4,000. 3.Selling expenses consist of salespersons’ salaries $88,000; depreciation on equipment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales commissions $10,000. All compensation should be recorded as Salaries and Wages.4.Administrative expenses consist of office salaries $54,000; dividends $14,000; utilities

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