The following information is taken from the records of O’Donnell Corp. at June 30, 2016, its fiscal year-end:
|
Advertizing expense |
$ 1,500 |
|
Commissions expense |
4,000 |
|
Delivery expense |
1,000 |
|
Insurance expense |
1,000 |
|
Opening inventory |
6,000 |
|
Purchases |
35,000 |
|
Purchase returns and allowance |
2,000 |
|
Rent expense |
2,500 |
|
Salaries expense |
5,000 |
|
Sales (gross) |
72,000 |
|
Sales returns and allowance |
2,000 |
|
Transportation-in |
1,000 |
The merchandize inventory at June 30, 2016 amounted to $10,000.
Required:
- Prepare a classified income statement. Assume all expenses not related to cost of goods sold are selling expenses.
- Compute gross profit percentage.
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