In 2015, Rondelli Company had net sales of $650,000 and cost of goods sold of $455,000. Operating expenses were $150,000, and interest expense was $10,000. Rondelli prepares a multiple-step income statement.
1. Compute Rondelli gross profit
2. Compute the gross profit rate
3. What is Rondelli income from operations and net income?
4. If Rondelli prepared a single-step income statement, what amount would it report for net income?