Prepare a traditional income statement for the month of may

Reference no: EM131972325

Problem

Sally's Gift Baskets sells gift baskets, on average, for $125; each gift basket costs, on average, $60. Debby pays salaries each month of $1, 300 and her store rent is $1,000 per month. She also pays sales commissions of 5% of the sales price. In May, 140 gift baskets were sold.

a. Prepare a traditional income statement for the month of May.
b. Prepare a contribution margin income statement for the month of May.

Reference no: EM131972325

Questions Cloud

Efficient market hypothesis and literature readings : Required: Using your understanding of the Efficient Market Hypothesis and literature readings, discuss this statement.

How much will you have in four years if you can earn : You will make the following investments for a boat at the lake: $3,300 today, $2,000 at the end of year 1, and $1500 at the end of year two.

What is the actual gross profit? : Sales Revenue is $750,800; actual manufacturing overhead is $120,700; allocated manufacturing overhead is $95,300. What is the actual gross profit?

What are the main type of service providers to a mutual fund : What are the main types of service providers to a mutual fund, which has a board of directors but usually no employees?

Prepare a traditional income statement for the month of may : Sally's Gift Baskets sells gift baskets, on average, for $125; each gift basket costs. Prepare a traditional income statement for the month of May.

Monthly payments for the last 9 years : When there are 9 years left on the loan, you refinance again to an annual rate of 2.2%. What are your monthly payments for the last 9 years?

What would investment be worth in 30 years : If you were only able to achieve a 15% return on your money, what would your investment be worth in 30 years?

Identify the internal control deficiencies in procedures : Identify the internal control deficiencies in Raider Company's procedures related to the sales and cash receipts functions as presented below.

How large a sales increase can the company achieve : Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000.

User Account

All Pages