Using the following information, prepare an income statement and identify gross profit, operating income, net income,...

  
 

Transcribed Image Text:

Using the following information, prepare an income statement and identify gross profit, operating income, net income, Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Inventories Cost of Goods Sold Administrative Expenses Accumulated Depreciation Sales Depreciation Expense Selling Expenses Common Stock Dividends Interest Expense $62,500 $362,500 $72,500 $187.500 $870,000 $36,250 $217,500 $10,000 $11,600 Corporate Tax Expense > > > DO $67,860 Operating Profit Margin Net Income Gross Profit Margin Net Profit Margin Search 1. -7.90% 2. 11.7% 3. -$68,750 4. 20.8% 5. $101,790 6. 51.1% 7. $445,000 Net Income Gross Profit Margin Net Profit Margin Gross Profit Operating Profit (EBIT) 5. $101,790 6. 51.1% 7. $445,000 8. 58.3% 9. $181,250 10. 10.6% 11. $507,500 $91,790 12. Using the following information, prepare an income statement and identify gross profit, operating income, net income, Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Inventories Cost of Goods Sold Administrative Expenses Accumulated Depreciation Sales Depreciation Expense Selling Expenses Common Stock Dividends Interest Expense $62,500 $362,500 $72,500 $187.500 $870,000 $36,250 $217,500 $10,000 $11,600 Corporate Tax Expense > > > DO $67,860 Operating Profit Margin Net Income Gross Profit Margin Net Profit Margin Search 1. -7.90% 2. 11.7% 3. -$68,750 4. 20.8% 5. $101,790 6. 51.1% 7. $445,000 Net Income Gross Profit Margin Net Profit Margin Gross Profit Operating Profit (EBIT) 5. $101,790 6. 51.1% 7. $445,000 8. 58.3% 9. $181,250 10. 10.6% 11. $507,500 $91,790 12.

Answer rating: 100% (QA)

To construct the income statement and calculate the various profit margins we will follow these steps using the information provided 1 Calculate Gross ... View the full answer