Question

Required information PA6-5 Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6-5] [The following information applies to the questions displayed below.] Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit Net Sales $ 356,700 Cost of Goods Sold $ 255,000 Salaries and Wages Expense 52,000 Office Expenses 11,500 Travel Expenses 1,000 Income Tax Expense 11,160 Net Profit 26,040 Totals $ 356,700 $ 356,700 PA6-5 Part 2 Compute the gross profit percentage. (Round your answer to 1 decimal place.)

Answer 1

Answer:

Gross PROFIT $ 101,700 29%

Explanation:

BIG TOMMY    Income Statement

$ 356,700       Sales

-$ 255,000      Cost of goods sold

$ 101,700         Gross PROFIT

-$ 52,000        Salarie sand Wages Expenses

-$ 11,500          Office Expenses

-$ 1,000           Travel Expenses

-$ 64,500        Operating EXPENSES

$ 37,200          Operating INCOME

-$ 11,160           Income Tax Expenses

-$ 11,160            NonOperating EXPENSES

$ 26,040         Net INCOME