The Following Is a List of Accounts for Carleton Corporation

question 70

Essay

The following is a list of accounts for Carleton Corporation for the year ended October 31, 2012. $$\begin{array} { l r } \text { Advertising expense } & \$ 130,000 \\\text { Amortization expense } & 90,000 \\\text { Cost of sales } & 545,000 \\\text { General and administrative expenses } & 158,000 \\\text { Income tax expense } & 105,000 \\\text { Interest expense } & 60,000 \\\text { Research expense } & 100,000 \\\text { Sales revenue } & 1,900,000 \\\text { Sales commissions } & 190,000 \\\text { Salaries expense } & 376,000\end{array}$$ Required:
A) Prepare an income statement for Carleton for the year.
B) What is Carleton's gross margin for the year?
C) What is Carleton's gross margin percentage for the year?

• A) Prepare an income statement for Carleton for the year.
• B) What is Carleton's gross margin for the year?
• C) What is Carleton's gross margin percentage for the year?

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Definitions:

Accounting Standard-Setting Body

An organization that establishes benchmarks or rules for preparing and presenting financial statements and other related accounting practices.

Securities and Exchange Commission

The U.S. federal agency responsible for regulating the securities industry and ensuring public companies adhere to disclosure laws.

Proprietorship

A business that is owned and run by one individual, where there is no legal distinction between the owner and the business entity.

Legal Entity

An organization that possesses legal rights and responsibilities, including the ability to enter contracts, sue, and be sued; can be a company, non-profit, or government organization.