Solution-Payton prepares a multiple step income statement

Payton prepares a multiple step income statement

Reference no: EM131143897

1. In 2010, Walter Payton Company had net sales of $900,000 and cost of goods sold of $540,000. Operating expenses were $230,000, and interest expense was $11,000. Payton prepares a multiple-step income statement.

Instructions

(a) Compute Payton's gross profit.

(b) Compute the gross profit rate. Why is this rate computed by financial statement users?

(d) If Payton prepared a single-step income statement, what amount would it report for net income?

(e) In what section of its classified balance sheet should Payton report merchandise inventory?

Reference no: EM131143897

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Payton prepares a multiple step income statement : In 2010, Walter Payton Company had net sales of $900,000 and cost of goods sold of $540,000. Operating expenses were $230,000, and interest expense was $11,000. Payton prepares a multiple-step income statement.

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Payton prepares a multiple step income statement

Reference no: EM131143897

Reference no: EM131143897

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