Question\textbf{Hendry's Boutique is a retail clothing store for women. The store operates out of a rented building in Storm Lake, Iowa. Shown below is the store's adjusted year-end trial balance dated December 31, 2011.}
\begin{table}[h!] \centering \begin{tabular}{|l|r|r|} \hline \multicolumn{3}{|l|}{\textbf{HENDRY'S BOUTIQUE ADJUSTED TRIAL BALANCE DECEMBER 31, 2011}} \\ \hline \textbf{Account} & \textbf{Debit} & \textbf{Credit} \\ \hline Cash & \$15,200 & \\ \hline Accounts receivable & 2,600 & \\ \hline Merchandise inventory & 17,500 & \\ \hline Prepaid rent & 1,800 & \\ \hline Office supplies & 900 & \\ \hline Office equipment & 41,000 & \\ \hline Accumulated depreciation: office equipment & & \$12,000 \\ \hline Accounts payable & & 12,750 \\ \hline Sales taxes payable & & 3,200 \\ \hline Capital stock & & 18,000 \\ \hline Retained earnings & & 21,050 \\ \hline Sales & & 226,000 \\ \hline Sales returns and allowances & 2,500 & \\ \hline Cost of goods sold & 100,575 & \\ \hline Purchase discounts lost & 250 & \\ \hline Utilities expense & 4,120 & \\ \hline Office supply expense & 520 & \\ \hline Depreciation expense: office equipment & 2,750 & \\ \hline Rent expense & 6,100 & \\ \hline Insurance expense & 900 & \\ \hline Salaries expense & 88,095 & \\ \hline Income taxes expense & 8,190 & \\ \hline \textbf{Total} & \$293,000 & \$293,000 \\ \hline \end{tabular} \end{table}
\textbf{Instructions:} \begin{enumerate} \item[(a)] Prepare an income statement for Hendry's Boutique dated December 31, 2011. \item[(b)] Compute the store's gross profit margin as a percentage of net sales. \end{enumerate}