The following data were taken from the records of Township Corporation at December 31, 2015: Sales revenue

Question:

The following data were taken from the records of Township Corporation at December 31, 2015:

Sales revenue ........ $85,000

Gross profit ......... 30,000

Selling (distribution) expense .. 7,000

Administrative expense ....... ?

Pretax income ........ 13,000

Income tax rate ........ 35%

Shares of stock outstanding ... 2,500

Required:Prepare a complete multiple-step income statement for the company (showing both gross profit and income from operations). Show all computations. What is the gross profit percentage?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...