Reference no: EM131632786

Question - Given the following selected accounts from the books of Holman Groceries Company;

a. Prepare the multi-step income statement, in proper form, for period ended 7/13/2016.

Sales $283,620 Sales discount $3,100

Transportation-in    7,425 Purchases returns/allowances  1,820

Purchases  101,180 Transportation-out    5,060

Beginning inventory   98,250 Sales returns/allowance  4,645

Purchase discount    8,300 Sales salaries expenses  28,740

Warehouse rent      12,000 Office rent  18,000

Insurance expense    4,800 (60% selling) Lighting and heating     9,600 (30% administration)

Admin salaries expense   10,300 Advertising expense   8,400

Supplies expense    6,600 (35% selling)   Miscellaneous expense  12,900 (50% selling)

The value of closing inventory, after physical stock-take, was $72,100.

b. Calculate both the gross profit margin and the profit margin, for 2016 for this company.