Presented below is information for Oakley Company for the month of March 2020. Cost of goods sold $254,000 Rent expense $36,000 Freight-out 7,500 Sales discounts 8,800 Insurance expense 5,000 Sales returns and allowances 11,000 Salaries and wages expense 75,000 Sales revenue 425,000 (a) Your Answer Correct Answer Partially correct answer iconYour answer is partially correct. Prepare a multiple-step income statement. OAKLEY COMPANY Income Statement For the Year Ended March 31, 2016March 31, 2020For the Month Ended March 31, 2020 Owner's Capital, March 31Operating ExpensesNet Income / (Loss)RevenuesGross Profit / (Loss)InvestmentsOwner's Capital, March 1Net SalesTotal Operating ExpensesDrawings $ LessAdd: $ DrawingsOwner's Capital, March 31Gross Profit / (Loss)Net SalesRevenuesTotal Operating ExpensesOperating ExpensesInvestmentsOwner's Capital, March 1Net Income / (Loss) Operating ExpensesOwner's Capital, March 31Gross Profit / (Loss)Owner's Capital, March 1Total Operating ExpensesNet SalesSales RevenuesNet Income / (Loss)DrawingsInvestments Sales RevenuesNet Income / (Loss)Net SalesInvestmentsOwner's Capital, March 31DrawingsOperating ExpensesTotal Operating ExpensesGross Profit / (Loss)Owner's Capital, March 1 Net SalesOperating ExpensesGross Profit / (Loss)Total Operating ExpensesSales RevenuesOwner's Capital, March 1Owner's Capital, March 31Net Income / (Loss)InvestmentsDrawings Total Operating ExpensesOperating ExpensesGross Profit / (Loss)Sales RevenuesDrawingsNet SalesInvestmentsOwner's Capital, March 1Owner's Capital, March 31Net Income / (Loss) $ (b) Compute the gross profit rate. (Round answer to 1 decimal places, e.g. 52.7%.) Gross profit rate %

Presented below is information for Oakley Company for the month of March 2020. Cost of goods sold $254,000 Rent expense $36,000 Freight-out 7,500 Sales discounts 8,800 Insurance expense 5,000 Sales returns and allowances 11,000 Salaries and wages expense 75,000 Sales revenue 425,000 (a) Your Answer Correct Answer Partially correct answer iconYour answer is partially correct. Prepare a multiple-step income statement. OAKLEY COMPANY Income Statement For the Year Ended March 31, 2016March 31, 2020For the Month Ended March 31, 2020 Owner's Capital, March 31Operating ExpensesNet Income / (Loss)RevenuesGross Profit / (Loss)InvestmentsOwner's Capital, March 1Net SalesTotal Operating ExpensesDrawings $ LessAdd: $ DrawingsOwner's Capital, March 31Gross Profit / (Loss)Net SalesRevenuesTotal Operating ExpensesOperating ExpensesInvestmentsOwner's Capital, March 1Net Income / (Loss) Operating ExpensesOwner's Capital, March 31Gross Profit / (Loss)Owner's Capital, March 1Total Operating ExpensesNet SalesSales RevenuesNet Income / (Loss)DrawingsInvestments Sales RevenuesNet Income / (Loss)Net SalesInvestmentsOwner's Capital, March 31DrawingsOperating ExpensesTotal Operating ExpensesGross Profit / (Loss)Owner's Capital, March 1 Net SalesOperating ExpensesGross Profit / (Loss)Total Operating ExpensesSales RevenuesOwner's Capital, March 1Owner's Capital, March 31Net Income / (Loss)InvestmentsDrawings Total Operating ExpensesOperating ExpensesGross Profit / (Loss)Sales RevenuesDrawingsNet SalesInvestmentsOwner's Capital, March 1Owner's Capital, March 31Net Income / (Loss) $ (b) Compute the gross profit rate. (Round answer to 1 decimal places, e.g. 52.7%.) Gross profit rate %

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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(a)

Your Answer
Correct Answer

Partially correct answer iconYour answer is partially correct.

Prepare a multiple-step income statement.

OAKLEY COMPANY Income Statement For the Year Ended March 31, 2016March 31, 2020For the Month Ended March 31, 2020
Owner's Capital, March 31Operating ExpensesNet Income / (Loss)RevenuesGross Profit / (Loss)InvestmentsOwner's Capital, March 1Net SalesTotal Operating ExpensesDrawings
		$
LessAdd:
	$


DrawingsOwner's Capital, March 31Gross Profit / (Loss)Net SalesRevenuesTotal Operating ExpensesOperating ExpensesInvestmentsOwner's Capital, March 1Net Income / (Loss)

Operating ExpensesOwner's Capital, March 31Gross Profit / (Loss)Owner's Capital, March 1Total Operating ExpensesNet SalesSales RevenuesNet Income / (Loss)DrawingsInvestments
Sales RevenuesNet Income / (Loss)Net SalesInvestmentsOwner's Capital, March 31DrawingsOperating ExpensesTotal Operating ExpensesGross Profit / (Loss)Owner's Capital, March 1




Net SalesOperating ExpensesGross Profit / (Loss)Total Operating ExpensesSales RevenuesOwner's Capital, March 1Owner's Capital, March 31Net Income / (Loss)InvestmentsDrawings
Total Operating ExpensesOperating ExpensesGross Profit / (Loss)Sales RevenuesDrawingsNet SalesInvestmentsOwner's Capital, March 1Owner's Capital, March 31Net Income / (Loss)		$

(b)

Compute the gross profit rate. (Round answer to 1 decimal places, e.g. 52.7%.)

Gross profit rate

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Cost of goods sold	$254,000	Rent expense	$36,000
Freight-out	7,500	Sales discounts	8,800
Insurance expense	5,000	Sales returns and allowances	11,000
Salaries and wages expense	75,000	Sales revenue	425,000