Author Question: Prepare an income statement using the following information: Gross profit margin 40 Gross ... (Read 79 times)

robinn137 · **on:** Jul 6, 2018

Prepare an income statement using the following information:

Gross profit margin 40
Gross profit 7,500
Tax rate 35
Operating profit 400

What will be an ideal response?

Question 2

All of the following are items that cause a difference between the bank balance and the book balance except
a. NSF checks.
b. deposits in transit.
c. outstanding checks.
d. canceled checks.
e. bank service charges.

morganmarie791 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Net sales 18,750
Cost of goods sold 11,250
Gross profit 7,500
Operating expenses 7,100
Operating profit 400
Income tax expense 140
Net profit 260

Answer to Question 2

d