Summarized below are the transactions recorded by Rummy Ltd. for calendar 2018, using a perpetual inventory system. Their Jan 1 opening balances were: accounts receivable $145,000, inventory $45,000, and accounts payable $122,000. 
(Record receipts from customers)InstructionsPrepare the 2018 income statement to the gross profit line only.
a. As it would appear using the perpetual inventory system.
b. As it would appear if a periodic inventory system had been used.
c. Calculate the gross profit margin for the year.
Definitions:
Rate of Inflation
The percentage increase in the general level of prices for goods and services in an economy over a period of time, indicating how fast prices are rising.
Consumer Price Index
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.
Annual Inflation Rate
The percentage increase in the price level of goods and services in an economy over a year.
Overestimating
The act of assessing something more highly than its actual value or performance, often leading to errors in judgment or planning.
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