Fairchild Group's Accountant Prepared the Following Income Statement for the Month

question 178

Essay

Fairchild Group's accountant prepared the following Income Statement for the month of August.
Required:
Fairchild Group
Income Statement
For the month of August
$\begin{array}{ll}\text { Sales revenue } & \$ 912,200 \\\text { Cost of goods sold } & 601,920 \\\text { Gross margin } & 310,080\\\text { Less: }\\\text { Selling expense } & 164,160 \\\text { Administrative expense } & 63,840 \\\text { Operating income } & \$ 82,080\end{array}$ A. Calculate the sales revenue percent.
B. Calculate the cost of goods sold percent.
C. Calculate the gross margin percent.
D. Calculate the selling expense percent.
E. Calculate the administrative expense percent.
F. Calculate the operating income percent.

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Definitions:

Proprietary Funds

Funds used by a governmental entity to account for activities similar to those found in private businesses, where the determination of net income, financial position, and changes in financial position is necessary.

For-Profit Organizations

Entities that operate with the primary goal of earning profit, distributing earnings to owners or shareholders.

Fiduciary Funds

Financial resources administered by a trustee or fiduciary on behalf of individuals or entities, following specific guidelines and for a specific purpose.

Trustee

A trustee is an individual or a financial institution appointed to manage assets or property for the benefit of others, typically in the context of a trust or estate.