Assume that Corbin Enterprises classifies all operating expenses into two categories: $(1)$ selling and $(2)$ general and administrative. The following income statement items, arranged in alphabetical order, are taken from the records of Corbin Enterprises for the current year: N$ N$ Advertising expenses $9,000$ Rent expense $-$ office $26,400$ Cost of goods sold $150,000$ Rent expense $-$ Sales person's car $18,000$ Depreciation expense $-$ computer $4,500$ Sales revenue $350,000$ Dividend revenue $2,700$ Supplies expense $-$ Office $1,300$ Income tax expense $30,700$ Utilities expense $6,750$ Interest expense $1,900$ Wage expense $-$ office $45,600$

$1.$ Prepare a multiple$-$step income statement for the current year using these balances.

$2.$ What advantages do you see in this form for the income statement compared to the single step income statement

$3.$ Compute Corbins profit margin.

Answer rating: 100% (QA)

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