The Caltor Company gathered the following condensed data for the Year Ended December 31, 2010
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Cost of goods sold = $ 710,000
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Net sales
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1,279,000
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Administrative expenses
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239,000
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Interest expense
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68,000
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Dividends paid
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38,000
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Selling expenses
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45,000
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Instructions:
1: Prepare a multiple-step income statement for the year ended December 31, 2010.
2: Compute the profit margin ratio and gross profit rate. Caltor Company's assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.