In its income statement for the year ended December 31, 2010, Maris Company reported the following condensed

Question:

In its income statement for the year ended December 31, 2010, Maris Company reported the following condensed data.

Instructions
(a) Prepare a multiple-step income statement.
(b) Calculate the profit margin ratio and gross profit rate.
(c) In 2009 Maris had a profit margin ratio of 5%. Is the decline in 2010 a cause forconcern?

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Financial Accounting Tools for Business Decision Making

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Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Apr 21, 2012 01:33 AM

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In its income statement for the year ended December 31, 2010, Maris Company reported the following condensed

Question:

Administrative expenses $435,000 Cost of goods sold Interest expense Interest revenue 987,000 68,000 65,000 Selling expenses Loss on sale of equipment Net sales Income tax expense 490,000 83,500 2,050,000 20,000

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a MARIS COMPANY Income Statement For the Year Ended December 31 2010 Net sales 2050000 Cost of goods ...View the full answer

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