Presented below is information for Zales Company for the month of January 2014. $$\begin{array} { l r l r }
\text { Cost of goods sold } & \$ 280,000 & \text { Rent expense } & \$ 35,000 \
\text { Freight-0ut } & 7,000 & \text { Sales discounts } & 8,000 \
\text { Insurance expense } & 12,000 & \text { Sales returns and allowances } & 13,000 \
\text { Salaries and wages expense } & 42,000 & \text { Sales revenue } & 421,000
\end{array}$$ Instructions
(a) Prepare a multiple-step income statement.
(b) Calculate the profit margin and the gross profit rate.

Question

Presented below is information for Zales Company for the month of January 2014. $$\begin{array} { l r l r } 
\text { Cost of goods sold } & \$ 280,000 & \text { Rent expense } & \$ 35,000 \
\text { Freight-0ut } & 7,000 & \text { Sales discounts } & 8,000 \
\text { Insurance expense } & 12,000 & \text { Sales returns and allowances } & 13,000 \
\text { Salaries and wages expense } & 42,000 & \text { Sales revenue } & 421,000
\end{array}$$ Instructions
(a) Prepare a multiple-step income statement.
(b) Calculate the profit margin and the gross profit rate.

Quizplus · Accepted Answer

The Answer of Presented below is information for Zales Company for the month of January 2014. $$\begin{array} { l r l r } 
\text { Cost of goods sold } & \$ 280,000 & \text { Rent expense } & \$ 35,000 \
\text { Freight-0ut } & 7,000 & \text { Sales discounts } & 8,000 \
\text { Insurance expense } & 12,000 & \text { Sales returns and allowances } & 13,000 \
\text { Salaries and wages expense } & 42,000 & \text { Sales revenue } & 421,000
\end{array}$$ Instructions
(a) Prepare a multiple-step income statement.
(b) Calculate the profit margin and the gross profit rate.

Presented Below Is Information for Zales Company for the Month