Presented below is information for Pharoah Company for the month of March 2020.Cost of goods sold $217,820 Rent expense $32,720Freight-out 7,150 Sales discounts 8,080Insurance expense 5,680 Sales returns and allowances 13,270Salaries and wages expense 57,060 Sales revenue 386,560Prepare a multiple-step income statement. (If there is a net loss then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 25.20%.)

Multi-Step Income statement - Under multi-step income statement all expenses and income are dividend…

Answered: multiple-step income statement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is information for Pharoah Company for the month of March 2020.

Cost of goods sold	$217,820	Rent expense	$32,720
Freight-out	7,150	Sales discounts	8,080
Insurance expense	5,680	Sales returns and allowances	13,270
Salaries and wages expense	57,060	Sales revenue	386,560

Prepare a multiple-step income statement. (If there is a net loss then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 25.20%.)

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