Merchandising operations and the multi-step income statement 1. Prepare and anal

ID: 2510982 • Letter: M

Question

Merchandising operations and the multi-step income statement 1. Prepare and analyze a merchandiser's multb-step income statement Merchandising operations and the multi-step income statement Excel HOME INSERTPAGE LAYOUTFORMULAS DATA REVIEW VIEW Sign In Ruler Fomula Bar Normal Page Break Page Custom Gidlines Headings Zoom 100% |to wrdow Macros Preview Layout ViewS Workbook Views Show Zoom Macros A1 Noodles Unlimited, Inc. sells swimming pool toys. The following adjusted trial 28 Note: wWhen more than one correct account could appear in a cell, ist items in order of largest to 2s smallest doliar amounts. Use cell referencing to select account tities and values. 30 All numbers should appear as positive numbers 31 2. After entering the formula in cell 852, use the Excel IF function to label cell A52 as either 32 "Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52 34 Income Statement 36 38 Less: 39 40 4 Net Sales 43 Gross Proft 44 Expenses: 45 icome from Operations 4s Other Expenses and Losses Sheet1 1 &postSubmissionView-13252708327568913;&wid-13252707374411255;&

Explanation / Answer

NOODLES UNLIMITED

Income Statement

For the year ended December 31, 20X1

Sales revenue

$175500

Less: Sales returns & allowance

($4700)

Less: Sales discount

($6000)

Net sales

$164800

Less: Cost of goods sold

($67700)

Gross profit

$97100

Less: Expenses;

Salaries & wages

$25900

Depreciation expense

$13800

Rent expense

$24000

($63700)

Income from operations

$33400

Other expenses & losses;

Interest expense

$1600

Loss on sale of equipment

$7700

($9300)

Net income

$24100

Gross profit margin percentage;

Formula of gross profit margin percentage = (Gross profit / Net sales) * 100

Gross profit = $97100

Net sales = $164800

Now let’s put the values in the given formula;

Gross profit margin percentage ($97100 / $164800) * 100 = 58.92%