Classified Income Statement

Question 1

Operating Revenue

Answer 1

Sales
Less Sales Returns & Allowances
Net Sales

Question 2

Cost of Goods Sold

Answer 2

Merchandise Inventory (Begin)
Purchases 
\+Freight In
=Delivered Cost of Purchases
-Less Purchases Returns & Allowances
    \+Purchases Discounts
Net delivered Cost of Purchases 
Total Merchandise Available for Sale
Less Merchandise Inventory (End)
Cost of Goods Sold

Gross Profit on Sales

Question 3

Operating Expenses

Answer 3

Selling Expenses
  Salaries Expense
  Advertising Expense 
  Cash Short or Over
  Supplies Expense 
  Depreciation Expense- Store Equipment 
Total Selling Expenses