Ascertain gross profit for F Hardware.

Question

Rickey’s Retail has the following financial information for the most recent accounting period. Prepare an income statement. Gross Sales= $864,740 Sales Returns & Allowances= $47,399 Cost of Goods Sold= $483,237 Rent Expense= $86,705 Interest Expense= $1,156 Income Tax Expense= $16,185 Depreciation Expense= $5,780 Salaries Expense= $98,266 Utility Expense= $28,902

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Chapter 11, Problem 4SEA

To determine

Ascertain gross profit for F Hardware.

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Rickey’s Retail has the following financial information for the most recent accounting period. Prepare an income statement. Gross Sales= $864,740 Sales Returns & Allowances= $47,399 Cost of Goods Sold= $483,237 Rent Expense= $86,705 Interest Expense= $1,156 Income Tax Expense= $16,185 Depreciation Expense= $5,780 Salaries Expense= $98,266 Utility Expense= $28,902

(True or False?) The income statement for a retailer shows both gross profit and profit.

Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $122,800 Sales returns and allowances 950 Sales discounts 570 Merchandise inventory, January 1 34,200 Purchases during the period 77,900 Purchases returns and allowances during the period 4,230 Purchases discounts taken during the period 2,260 Freight-in on merchandise purchased during the period 1,260 Merchandise inventory, December 31 31,600 Determine the gross profit.