Exercise 5-22 Partial Income Statement—Periodic System
LaPine Company has the following account balances as of December 31, 2014:
Purchase returns and allowances |
$ 400 |
Inventory, January 1 |
4,000 |
Sales |
80,000 |
Transportation-in |
1,000 |
Sales returns and allowances |
500 |
Purchase discounts |
800 |
Inventory, December 31 |
3,800 |
Purchases |
30,000 |
Sales discounts |
1,200 |
Required
Prepare a partial income statement for LaPine Company for 2014 through gross profit. Calculate LaPine’s gross profit ratio for 2014.