E5.9 (LO 5), AP Presented below is selected information for Lien Co. for the month of January 2022. Cost of goods sold Freight-out Insurance expense Salaries and wages expense $\$ 212,000$ 7,000 12,000 60,000 Rent expense Sales discounts Sales returns and allowances Sales revenue $\$ 32,000$ 8,000 20,000 370,000 Instructions a. Prepare an income statement using the format presented in Illustration 5.14. b. Compute the gross profit rate.

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