Reference no: EM132822040

Zzzz Stores Limited had the following account balances at november 31, 2021:

Rent expense $12,000

Repairs and maintenance expense 3,175

Sales discounts 10,300

Prepaid expenses 11,450

Cash received from debt 14,000

Freight expense 7,730

Income tax expense 12,145

Deferred revenue 8,750

Collections from customers on account 38,725

Insurance expense 1,800

Cost of goods sold 138,453

Sales returns and allowances 15,500

Sales revenue 268,700

Payments to suppliers on account 42,610

Office supplies expense 6,125

Travel and entertainment expense 3,180

Dividends, paid in cash 12,500

Contributions by owners 17,500

Advertising expense 26,570

Create a multiple step income statement and answer the following questions.

Problem 1: What is the company's gross profit ratio, also called gross profit margin ratio?

Problem 2: If the company uses the multiple step income statement what is net income?

Problem 3: If the company uses the multiple step income statement what is total operating expenses for this company?

Problem 4: What is total net sales for this company?

Problem 5: If the company uses the multiple step income statement what is total gross profit for this company?