Problem:
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 return on assets ratio. Partin Company's assets at the beginning of the year were $770,000 and were $830,000 at the end of the year.