Profitability and the Income Statement Presented below are income statement data for Poole &

Company for 2019:

Income tax expense . . . . . . . . . . . . . . . . $16,000 Sales revenue. . . . . . . . . . . . . . . . . . . $150,000

Cost of goods sold . . . . . . . . . . . . . . . . . 30,000 Operating expenses . . . . . . . . . . . . . . 57,000

Other expenses . . . . . . . . . . . . . . . . . . . 2,000

Required

Prepare a multi-step income statement for 2019 and calculate the company’s return on sales ratio. If

Poole’s return on sales was 26 percent in 2018, is the company’s profitability improving or declining?

Answer rating: 100% (QA)

To prepare a multistep income statement for 2019 we need to include the following sections Net Sales ... View the full answer