Final answer:
To determine if Recipe Unlimited Corporation is a merchandiser, one would look for 'Cost of Goods Sold' or 'Gross Profit' on the income statement, which are indicative of merchandising business activities.
Step-by-step explanation:
The question asks whether Recipe Unlimited Corporation, based on its income statement, functions as a merchandiser. To determine if Recipe Unlimited Corporation is a merchandiser, one would typically look for certain line items on the income statement that are characteristic of a merchandising company, such as "Cost of Goods Sold" or "Gross Profit." Merchandisers buy and resell products, so their income statements reflect the cost of purchasing the goods for resale and the revenue generated from selling those goods. Without access to the actual income statement it's not possible to provide a definitive answer, but if Recipe Unlimited Corporation's income statement shows these line items, it would indicate that they are indeed operating as a merchandiser.