Z Stores Limited had the following account balances at December 31, 2021: advertising expense of $11,300, collections from customers of $27,600, contributions from owners of $20,000, deferred revenue of $6,800, dividends paid of $10,000, income tax expense of $7,410, travel and entertainment expense of $2,942, freight expense of $6,750, office supplies expense of $4,160, cash received from debt of $15,000, payments to suppliers of $32,300, prepaid expenses of $8,200, sales revenue of $178,000, sales discounts of $7,500, sales returns and allowances of $22,

1. Z Stores Limited had the following account balances at December 31, 2021:
REQUIRED -
Create a multiple step income statement and answer the following questions. You do not have to
hand in the income statement - it is rough work only.
What is total net sales for this company?
What is total gross profit for this company?
What is total operating expenses for this company?
What is net income for this company?
What is the company's gross profit ratio, also called gross profit margin ratio?
Advertising expense $11,300
Collections from customers on account 27,600
Contributions by owners 20,000
Deferred revenue 6,800
Dividends, paid in cash 10,000
Income tax expense 7,410
Travel and entertainment expense 2,942
Freight expense 6,750
Office supplies expense 4,160
Cash received from debt 15,000
Payments to suppliers on account 32,300
Prepaid expenses 8,200
Sales revenue 178,000
Sales discounts 7,500
Sales returns and allowances 22,300
Repairs and maintenance expense 2,180
Cost of goods sold 81,510
Rent expense 10,000
Insurance expense 1,200