At the end of the fiscal year, August 31, 2011, selected accounts from the adjusted trial balance for Leonid’s Delivery, Inc., appeared as follows:
REQUIRED 1. Using the information given, prepare an income statement for Leonid’s Delivery, Inc. Store Salaries Expense, Advertising Expense, Stores Supplies Expense, and Depreciation Expense—Store Equipment are selling expenses. The other expenses are general and administrative expenses. Freight-in should be combined with Cost of Goods Sold. The company uses the perpetual inventory system. Show details of net sales and operating expenses. 2. Based on your knowledge at this point in the course, how would you use the income statement for Leonid’s Delivery, Inc., to evaluate the company’s profitability? What other financial statement should be considered andwhy?