The Following Data Were Taken from the Records of Lilo

question 66

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The following data were taken from the records of Lilo Corporation for the year ended December 31,2010 $$\begin{array} { l r } \text { Sales of merchandise for cash } & \$ 150,000 \\\text { Sales of merchandise on credit } & 800,000 \\\text { Sales returns and allowances } & 10,000 \\\text { Selling expenses } & 80,000 \\\text { Cost of goods sold } & 610,000 \\\text { Administrative expenses } & 90,000\end{array}$$ The following items have not been included in above amounts:
Estimated bad debt expense is 1% of credit sales.
The income tax rate is 35%.
10,000 of shares of common stock are outstanding.
Requirements:
A.Based on the above data,prepare a multiple-step income statement (including gross profit,pretax income,and earnings per share). B. 1. What was the gross profit ratio?
$\quad$ 2. Explain what gross profit and the gross profit ratio mean.

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Definitions:

Adults

People who have reached the age of maturity, typically associated with the completion of physical growth and the assumption of societal roles of responsibility.

30s

Likely refers to the decade of life from age 30 to 39, which can be significant in terms of career, family, and personal development, though it's not a standard psychological key-term without further context.

Generativity

The concern for establishing and guiding the next generation, often manifested through parenting or mentoring.