Exercise $1-6($Algo$)$ Traditional and Contribution Format Income Statements $[$L$01-6]$

Cherokee Incorporated is a merchandiser that provided the following information:

Required:

Prepare a traditional income statement.

Prepare a contribution format income statement.

Complete this question by entering your answers in the tabs below.

Prepare a traditional income statement.

Cherokee, Incorporated

Traditional Income StatementCherokee Incorporated is a merchandiser that provided the following information:

Amount

Number of units sold $14,000$

Selling price per unit $ $15$

Variable selling expense per unit $ $2$

Variable administrative expense per unit $ $1$

Total fixed selling expense $ $20,000$

Total fixed administrative expense $ $14,000$

Beginning merchandise inventory $ $10,000$

Ending merchandise inventory $ $25,000$

Merchandise purchases $ $86,000$

Required:

$1.$ Prepare a traditional income statement.

$2.$ Prepare a contribution format income statement.