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Cherokee Inc. is a merchandiser that provided the following information: 13,000 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $ $ $ $ $ 20,000 15,000 9,000 26,000 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement

Answer 1

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Ans: el in Cherokee Inc. Traditional Income Statement $195,000 $69,000 $126.000 Sales Cost of Goods sold Gross margin | Selling and administrating Expenses, Selling Expenses que Expenses $46.000 $28.000 1 $74000 $52.000 1. Net operating Income Contuibution format Income Statement Sales Spanies $195,000 | Vaneble Expenses i Cost of Goods sold $69,000 1 Selling Expenses $26.000 - Administrative Expenses | 13.000 $ 108,000 Contribution margin $87.000 fixed Expenses to be Selling Expenses $20,000 Administratine Expenses $15,000 $ 35,000 Net operating income $58.000