The following information is available for Partin Company.
|
Sales
|
$598,000
|
|
Sales returns and allowances
|
20,000
|
|
Cost of goods sold
|
398,000
|
|
Selling expense
|
69,000
|
|
Administrative expense
|
25,000
|
|
Interest expense
|
19,000
|
|
Interest revenue
|
20,000
|
Instructions:
1: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2007.
2: Compute the profit margin ratio and gross profit rate. Partin Company's assets at the beginning of the year were $770,000, and they 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.