Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of $1,917,000 (dollar amounts in thousands, except earnings per share).
a. Prepare an income statement for the year in a multiple-step format.
b. Compute the (1) gross profit rate, (2) net income as a percentage of net sales, (3) return on assets, and (4) return on equity for the year. (Round your computations to one decimal place.) 

c. Explain why interest revenue is not included in the company’s gross profit computation.

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SPINX, INC. STATEMENT OF EARNINGS FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR Net sales...... Costs and expenses: Cost of goods sold Operating expenses.. Interest revenue ... Earnings before income tax.. Income tax expense.. Net earnings..... Earnings per share $4,395,253 (2,821,455) (1,004,396) 15,797 $ 585,199 (204,820) $ 380,379 $1.70