Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold Selling...

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Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense. Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. 13,000 $ 17 $ 1 $ 1 $ 19,000 $ 15,000 $ 9,000 $ 25,000 $ 86,000 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 32,000 Administrative expenses 41,000 X Net operating income $ 221,000 74,000 X 147,000 X 73,000 Cherokee, Inc. Contribution Format Income Statement $ 74,000 X 13,000 26,000 X 19,000 15,000 Sales Variable expenses: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed expenses: Selling expenses Administrative expenses Net operating income $ 221,000 113,000 108,000 X 34,000 74,000 > $ Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense. Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. 13,000 $ 17 $ 1 $ 1 $ 19,000 $ 15,000 $ 9,000 $ 25,000 $ 86,000 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 32,000 Administrative expenses 41,000 X Net operating income $ 221,000 74,000 X 147,000 X 73,000 Cherokee, Inc. Contribution Format Income Statement $ 74,000 X 13,000 26,000 X 19,000 15,000 Sales Variable expenses: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed expenses: Selling expenses Administrative expenses Net operating income $ 221,000 113,000 108,000 X 34,000 74,000 > $

Answer rating: 100% (QA)

Answer 1 Prepare a traditional income statement Cherokee Inc Traditional Income Statement Sal... View the full answer