The following is a list of selected events for Sunglass Shack for 2013. Sunglass Shack uses a perpetual inventory system and had a zero inventory balance prior to these transactions.
1) Purchased merchandise on account for $85,000.
2) Sold inventory costing $62,000 for $104,000 on account.
3) Paid transportation-out cost of $3,500 on goods sold.
4) Paid operating expense of $27,600.
5) Sold land for $22,700 that had cost $25,000.
6) A count of the inventory revealed that there was $22,900 of inventory on hand at the end of 2013.
Required:
Answer the following questions based on the above information.
a) What was Sunglass Shack's net income for 2013?
b) Compute gross margin and the gross margin percent for 2013.
c) What amount of inventory will appear on the balance sheet for December 31, 2013?
d) Based on the above information, prepare a multistep income statement for 2013.

Question

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The Answer of The following is a list of selected events for Sunglass Shack for 2013. Sunglass Shack uses a perpetual inventory system and had a zero inventory balance prior to these transactions.
1) Purchased merchandise on account for $85,000.
2) Sold inventory costing $62,000 for $104,000 on account.
3) Paid transportation-out cost of $3,500 on goods sold.
4) Paid operating expense of $27,600.
5) Sold land for $22,700 that had cost $25,000.
6) A count of the inventory revealed that there was $22,900 of inventory on hand at the end of 2013.
Required:
Answer the following questions based on the above information.
a) What was Sunglass Shack's net income for 2013?
b) Compute gross margin and the gross margin percent for 2013.
c) What amount of inventory will appear on the balance sheet for December 31, 2013?
d) Based on the above information, prepare a multistep income statement for 2013.

The Following Is a List of Selected Events for Sunglass