In 2019, Laquen Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and interest expense was $11,000. Laquen prepares a multiple-step income statement.
Instructions
- Compute Laquen's gross profit.
- Compute the gross profit rate. Why is this rate computed by financial statement users?.
- What is Laquen's income from operations and net income?
- If Laquen prepared a single-step income statement, what amount would it report for et income?
- In what section of its classified balance sheet should Laqen report inventory?
Solution
