Presented below is information for Zhou Co. for the month of January 2014

Presented below is information for Zhou Co. for the month of January 2014. Cost of goods sold $205,900 Rent expense $33,700 Freight-out 8,000 Sales discounts 8,300 Insurance expense 12,600 Sales returns and allowances 18,900 Salaries and wages expense 61,600 Sales revenue 391,600

(a) Your answer is correct. Prepare an income statement using the multi-step format. Assume a 20% tax rate. ZHOU Co. Income Statement For the Month Ended January 31, 2014 Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, January 31 Sales Total Expenses Total Revenues Net Sales Gross Profit Operating Expenses Total Operating Expenses Income Before Income Taxes $ Add Less : $     Dividends     Expenses     Net Income / (Loss)     Retained Earnings, January 1     Retained Earnings, January 31     Sales     Total Expenses     Total Revenues     Net Sales     Gross Profit     Operating Expenses     Total Operating Expenses     Income Before Income Taxes Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, January 31 Sales Total Expenses Total Revenues Net Sales Gross Profit Operating Expenses Total Operating Expenses Income Before Income Taxes Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, January 31 Sales Total Expenses Total Revenues Net Sales Gross Profit Operating Expenses Total Operating Expenses Income Before Income Taxes     Dividends     Expenses     Net Income / (Loss)     Retained Earnings, January 1     Retained Earnings, January 31     Sales     Total Expenses     Total Revenues     Net Sales     Gross Profit     Operating Expenses     Total Operating Expenses     Income Before Income Taxes Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, January 31 Sales Total Expenses Total Revenues Net Sales Gross Profit Operating Expenses Total Operating Expenses Income Before Income Taxes Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, January 31 Sales Total Expenses Total Revenues Net Sales Gross Profit Operating Expenses Total Operating Expenses Income Before Income Taxes $ Attempts: 2 of 3 used

(b) Your answer is correct. Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%.) Profit margin % Gross profit rate %