Montmorency Ltée reported the following condensed income statement data (in thousands) for the year ended August 31, 2018:
Administrative expenses........................................$ 670
Sales discounts..........................................................110
Cost of goods sold.................................................4,030
Income tax expense...................................................560
Sales revenue..........................................................7,200
Interest expense.........................................................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.