Question

Exercise 5-09 a-b (Part Level Submission)

Presented below is information for Kaila Company for the month of March 2020.

Cost of goods sold		$215,000		Rent expense		$30,000
Freight-out		7,000		Sales discounts		8,000
Insurance expense		6,000		Sales returns and allowances		13,000
Salaries and wages expense		58,000		Sales revenue		380,000

(a)

	Your answer is correct.

Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

KAILA COMPANY
Income Statement

For the Month Ended March 31, 2020March 31, 2020For the Year Ended March 31, 2020

DrawingsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31SalesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses

$

LessAdd:

$

        Drawings    Net Income / (Loss)    Owner's Capital, March 1    Owner's Capital, March 31    Sales Revenues    Total Revenues    Net Sales    Gross Profit    Operating Expenses    Total Operating Expenses

DrawingsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses

DrawingsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31Sales RevenuesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating Expenses

        Drawings    Net Income / (Loss)    Owner's Capital, March 1    Owner's Capital, March 31    Sales Revenues    Total Revenues    Net Sales    Gross Profit    Operating Expenses    Total Operating Expenses

        Drawings    Net Income / (Loss)    Owner's Capital, March 1    Owner's Capital, March 31    Sales Revenues    Total Revenues    Net Sales    Gross Profit    Operating Expenses    Total Operating Expenses

$

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Attempts: 2 of 3 used

(b)

Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 25.20%.)

Gross profit rate

%

Answer 1