Cherokee Incorporated is a merchandiser that provided the following information: Amount 11,000 $ 16 $2 $3 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. $ 20,000 $ 14,000 $ 10,000 $ 24,000 $ 86,000
Cherokee Incorporated is a merchandiser that provided the following information: Amount 11,000 $ 16 $2 $3 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. $ 20,000 $ 14,000 $ 10,000 $ 24,000 $ 86,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cherokee Incorporated is a merchandiser that provided the following information:
Number of units sold
Selling price per unit
Variable selling expense per unit
Variable administrative expense per unit
Tatal fixed selling expense
Total fixed administrative expense
Beginning merchandise inventory
Ending merchandise inventory
Merchandise purchases
Required:
1. Prepare a traditional income statement.
2. Prepare a contribution format income statement.
Required 1 Required 2
Prepare a traditional income statement.
Complete this question by entering your answers in the tabs below.
Cherokee, Incorporated
Traditional Income Statement
Sales
Cast of goods sold
Gross margin
Selling and administrative expenses
Selling expenses
Administrative experises
Net operating income
Amount
11,008
$16
52
$3
< Floquired 1
$ 28,000
$
14,000
$ 10,000
$ 24,000
$ 86,008
$ 176.000
Required 2 >
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