Question - The Caldor Company gathered the following condensed data for the year ended December 31, 2014:
Cost of Goods Sold $500,000
Net Sales 975,000
Selling Expenses 150,000
Interest Expense 25,000
Administrative Expenses 175,000
Common Stock Dividends Paid 50,000
Income tax percentage 35%
Instructions:
(1) Prepare a multiple-step income statement for the year ended December 31, 2014.
(2) Compute the gross margin percentage and net profit margin ratio. Caldor Company's assets at the beginning of the year were $900,000, and the assets were $950,000 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.