Question: Exercise #2 Prepare a classified income statement . Presented below is information for Baker Company for the month of March 2014. Cost of goods sold

Exercise #2

Prepare a classified income statement.

Presented below is information for Baker Company for the month of March 2014.

Cost of goods sold

$212,000

Rent expense

$ 32,000

Freight-out

9,000

Sales discounts

6,600

Insurance expense

6,000

Sales returns and allowances

13,000

Salaries and wages expense

58,000

Sales revenue

380,000

Instructions

(a)

Prepare a classified income statement.

(b)

Compute the gross margin rate.

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