Presented below is information for Oakley Company for the month of March 2016. $$\begin{array} { l c l r }
\text { Cost of goods sold } & \$ 254,000 & \text { Rent expense } & \$ 36,000 \
\text { Freight-out } & 7,500 & \text { Sales discounts } & 8,800 \
\text { Insurance expense } & 5,000 & \text { Sales returns and allowances } & 11,000 \
\text { Salaries and wages expense } & 75,000 & \text { Sales revenue } & 425,000
\end{array}$$ Instructions
(a) Prepare a multiple -step income statement.
(b) Compute the gross profit rate.

Question

Presented below is information for Oakley Company for the month of March 2016. $$\begin{array} { l c l r } 
\text { Cost of goods sold } & \$ 254,000 & \text { Rent expense } & \$ 36,000 \
\text { Freight-out } & 7,500 & \text { Sales discounts } & 8,800 \
\text { Insurance expense } & 5,000 & \text { Sales returns and allowances } & 11,000 \
\text { Salaries and wages expense } & 75,000 & \text { Sales revenue } & 425,000
\end{array}$$ Instructions
(a) Prepare a multiple -step income statement.
(b) Compute the gross profit rate.

Quizplus · Accepted Answer

The Answer of Presented below is information for Oakley Company for the month of March 2016. $$\begin{array} { l c l r } 
\text { Cost of goods sold } & \$ 254,000 & \text { Rent expense } & \$ 36,000 \
\text { Freight-out } & 7,500 & \text { Sales discounts } & 8,800 \
\text { Insurance expense } & 5,000 & \text { Sales returns and allowances } & 11,000 \
\text { Salaries and wages expense } & 75,000 & \text { Sales revenue } & 425,000
\end{array}$$ Instructions
(a) Prepare a multiple -step income statement.
(b) Compute the gross profit rate.

Presented Below Is Information for Oakley Company for the Month