Problem 4. Presented below is information for Zales Co. for the month of January 2018. Cost of goods sold $212,000 Rent expense Freight-out Insurance expense Salary expense Instructions (a) Prepare an income statement. (b) Calculate the profit margin ratio and the gross profit rate. 7,000 Sales discounts 12,000 58,000 Sales S32,000 8,000 13,000 Sales returns and allowances 370,000 tional). The trial balance of Holland Company at the end of its fiscal year, August 31, 2018, Problem 5 (op includes these accounts: Beginning Inventory $18,700; Purchases $1 54,000; Sales Revenue $190,000; Freight-in S8,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchase Returns and Allowances $5,000. The ending merchandise inventory is $19,000. Instructions Prepare a cost of goods sold section (periodic system) for the year ending August 31,2018. 5-1