Presented below is information for Yu Co. for the month of January 2012.
Cost of goods sold ................ $212,000
Rent expense ........................ $32,000
Freight-out .............................. 7,000
Sales discounts ......................... 8,000
Insurance expense .................... 12,000
Sales returns and allowances ........ 20,000
Salaries and wages expense ......... 60,000
Sales revenue ........................ 370,000
Instructions
(a) Prepare an income statement using the format presented on page 243. Assume a 25% tax rate.
(b) Calculate the profit margin ratio and the gross profit rate.