Question: In 2017, Matt Cruz Company had net sales of $900,000 and cost of goods sold of $522,000. Operating expenses were $225,000, and expense was $11,000. Cruz prepares a multiple-step income statement.
Instructions: Compute Cruz's gross profit.
Compute the gross profit rate. Why is this rate by financial statement users?
What is Cruz's income from operations and net income?
If Cruz prepared a single-step income statement, what amount would it report for net income?
In what section of its classified balance sheet should Cruz report inventory?