The Caltor Company gathered the following condensed data for the year ended December 31, 2010:
Cost of goods sold .........  $ 710,000Net sales............. 1,279,000Administrative expenses...... 239,000Interest expense.......... 68,000Dividends paid........... 38,000Selling expenses......... 45,000
Instructions:
1. Prepare a multiple-step income statement for the year ended December 31, 2010.
2. Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and 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.