Q ACC 222 Flashcar McGrawHill C ch2 Exercise Pro e The C e

Q ACC 222 Flashcar: × ? McGraw-Hill C. ch.2 Exercise Pro ×(e The C ezto.mheducation.com/hm.tpx Ho h. 2 Exercise Problems- P15, E2-5, E2-6, E2-9, E2-10 KQuestion 17 (of 19) value: 2.50 points Cherokee Inc. is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 10,000 18 $ 22.000 15,000 S 8,000 S 24,000 $ 85,000 Required 1. Prepare a traditional income statement CHEROKEE, INC Traditional Income Statement Selling and administrative expenses O Type here to search

Solution

INCOME STATEMENT SALES 180000 (10000*18) ADD CHANGE IN STOCK 16000 (24000-8000) LESS PURCHASES 85000 LESS SELLING AND ADMINISTRATIVE EXPENSE FIXED SELLING EXPENSE 22000 VARIABLE SELLING EXPENSES 20000 (10000*2) FIXED ADMINISTRATIVE EXPENSE 15000 VARIABLE ADMINISTRATIVE EXPENSE 10000 (10000*1) NET INCOME 44000