The adjusted trial balance for Checker Flag Auto, Inc., as of January 31, 2018, is presented next:

Requirements

1. Prepare the multistep income statement for January for Checker Flag Auto, Inc.

2. Calculate the gross profit percentage for January for Checker Flag Auto, Inc.

3. What does Checker Flag Auto, Inc.?s gross profit percentage mean?

Transcribed Image Text:

Checker Flag Auto, Inc. Trial Balance January 31, 2018 ACCOUNT DEBIT CREDIT $ 10,100 Cash Accounts Receivable 3,400 46,300 3,500 Inventory Estimated Inventory Returns Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Estimated Refund Liability 2,600 81,000 $ 12,900 5,100 6,700 2,600 Unearned Sales Revenue Note Payable, Long-term 41,000 30,000 Common Stock Retained Earnings 76,450 Dividends 45,000 Sales Revenues 188,300 Cost of Goods Sold 102,700 43,600 24,300 Selling Expense General Expense Interest Expense Total 550 $363,050 $363,050