Montmorency Lte reported the following condensed income statement data (in thousands) for the year ended August 31,

Montmorency Ltée reported the following condensed income statement data (in thousands) for the year ended August 31, 2015:

Administrative expenses ....................... $ 670

Cost of goods sold ............................. 4,030

Income tax expense .............................. 560

Net sales ......................................... 7,090

Other expenses .................................... 270

Selling expenses .................................. 260

Instructions

(a) Prepare a multiple-step income statement.

(b) Are the expenses classified by nature or function in the list of accounts above?

(c) Calculate the gross profit margin and profit margin.