ANSWERS TO QUESTIONS

(c) DAPHNE MAIN FASHION CENTER Income Statement For the Year Ended November 30, 2007 Sales revenue Sales $757,200 Less: Sales returns and allowances 4,200 Net sales 753,000 Cost of goods sold 497,400 Gross profit 255,600 Operating expenses Selling expenses Salaries expense $98,000 ($140,000 X 70%) Advertising expense 26,400 Rent expense 19,200 ... ................
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