Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 12,000 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 17 3 $ 21,000 $ 15,000 $ 10,000 $ 25,000 $ 88,000 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 204,000 73,000 131,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses 45,000 Administrative expenses 51,000 96,000 35,000 Net operating income < Required 1 Required 2 >

“ Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 12,000 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 17 3 $ 21,000 $ 15,000 $ 10,000 $ 25,000 $ 88,000 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 204,000 73,000 131,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses 45,000 Administrative expenses 51,000 96,000 35,000 Net operating income < Required 1 Required 2 > ”