The following selected information is available for Middleton Wholesalers for September 2016.

Purchases Sales Freight inwards Discount received Beginning inventory, 1 September 2016 Ending inventory, 30 September 2016 Purchases returns and allowances Sales returns and allowances Freight outwards Rent expense Sales salaries expense Discount allowed Depreciation expense — office equipment Office supplies expense Office salaries expense Advertising expense Insurance expense

$

73 100 134 800 1 560 1 220 52 200 31 600 1040 2 600 540 1300 11 100 2 780 100 310 10 100 1 900 240

Required

A. Prepare the detailed income statement for Middleton Wholesalers for the month ended 30 September 2016.

B. Calculate the ratio of gross profit to net sales and express as a percentage.

C. Calculate the ratio of profit to net sales and express as a percentage.

D. What might these ratios indicate?