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 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. Amount 10,000 $ 18 $ 1 $ 3 $ 19,000 $ 15,000 $ 11,000 $ 26,000 $ 87,000
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 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. Amount 10,000 $ 18 $ 1 $ 3 $ 19,000 $ 15,000 $ 11,000 $ 26,000 $ 87,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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.
Amount
10,000
$ 18
$ 1
$ 3
$ 19,000
$ 15,000
$ 11,000
$ 26,000
$ 87,000
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare a traditional income statement.
Cherokee, Incorporated
Traditional Income Statement
Selling and administrative expenses:
< Required 1
Variable expenses:
Fixed expenses:
Show Transcribed Text
Prepare a contribution format income statement.
Cherokee, Incorporated
Contribution Format Income Statement
Co
o
Required 2 >
0
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