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Presented below is information for Yu Co. for the month of January 2012.
Cost of goods sold ................ $212,000Rent expense ........................ $32,000Freight-out .............................. 7,000Sales discounts ......................... 8,000Insurance expense .................... 12,000Sales returns and allowances ........ 20,000Salaries and wages expense ......... 60,000Sales revenue ........................ 370,000
Instructions
(a) Prepare an income statement using the format presented on page 243. Assume a 25% tax rate.
(b) Calculate the profit margin ratio and the gross profit rate.
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