Kingston Brush Company sells standard hair brushes. The following information summarizes Kingston's operating activities for 2009:

Requirements 

1. Prepare an income statement for 2009. Compute the ratio of operating expense to total revenue and operating income to total revenue,

2. Kingston sold 5,800 brushes in 2009. Compute the unit cost for one brush.

Transcribed Image Text:

Selling and administrative expenses.. Purchases...... Sales revenue Merchandise inventory, January 1, 2009............... Merchandise inventory, December 31, 2009............. $ 45,000 63,000 125,000 7,000 5,000