Question - Given the following selected accounts from the books of Holman Groceries Company;
a. Prepare the multi-step income statement, in proper form, for period ended 7/13/2016.
Sales $283,620 Sales discount $3,100
Transportation-in 7,425 Purchases returns/allowances 1,820
Purchases 101,180 Transportation-out 5,060
Beginning inventory 98,250 Sales returns/allowance 4,645
Purchase discount 8,300 Sales salaries expenses 28,740
Warehouse rent 12,000 Office rent 18,000
Insurance expense 4,800 (60% selling) Lighting and heating 9,600 (30% administration)
Admin salaries expense 10,300 Advertising expense 8,400
Supplies expense 6,600 (35% selling) Miscellaneous expense 12,900 (50% selling)
The value of closing inventory, after physical stock-take, was $72,100.
b. Calculate both the gross profit margin and the profit margin, for 2016 for this company.