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Presented Below Is Information for Zales Company for the Month

question 135

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Presented below is information for Zales Company for the month of January 2014.  Cost of goods sold $280,000 Rent expense $35,000 Freight-0ut 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 13,000 Salaries and wages expense 42,000 Sales revenue 421,000\begin{array} { l r l r } \text { Cost of goods sold } & \$ 280,000 & \text { Rent expense } & \$ 35,000 \\\text { Freight-0ut } & 7,000 & \text { Sales discounts } & 8,000 \\\text { Insurance expense } & 12,000 & \text { Sales returns and allowances } & 13,000 \\\text { Salaries and wages expense } & 42,000 & \text { Sales revenue } & 421,000\end{array} Instructions
(a) Prepare a multiple-step income statement.
(b) Calculate the profit margin and the gross profit rate.

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