Question - In 2008, Walter Payton Company had net sales of $900,000 and cost of goods sold of $540,000. Operating expenses were $230,000, and interest expense was $11,000. Payton prepares a multiple-step income statement.
a. Compute Payton's gross profit.
b. Compute the gross profit rate. (Round answer to 0 decimal places, e.g. 125.)
c. What is Payton's income from operations and net income?
d. If Payton prepared a single-step income statement, what amount would it report for net income?
e. In what section of its classified balance sheet should Payton report merchandise inventory?