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Zales Co - Income & Profit

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Presented below is information for Zales Co. for the month of January 2007

Cost of goods sold = 212,000 Rent expense = 32,000
Freight out = 7,000 Sales discount = 8,000
Insurace expense = 12,000 Sales returns and allowances = 13000
Salary expense = 58,000 Sales = 370,000

A) prepare an income statement

B) Calculate the profit margin ratio and the gross profit rate.

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Solution Summary

Excel spreadsheet attached shows how to prepare an income statement, profit margin and gross profit ratio for Zales Co.

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Presented below is information for Zales Co. for the month of January 2007

Cost of goods sold = 212,000 Rent expense = 32,000
Freight out = 7,000 Sales discount = 8,000
Insurace expense = 12,000 Sales returns and allowances = 13000
Salary expense = 58,000 Sales = ...

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