The following information is available for Partin Company: Sales $598,000 Sales Returns and Allowances 20,000 Cost of
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Question:
Sales $598,000
Sales Returns and Allowances 20,000
Cost of Goods Sold 398,000
Selling Expense 69,000
Administrative Expense 25,000
Interest Expense 19,000
Interest Revenue 20,000
Instructions
(1). Use the above information to prepare a multiple-step income statement for the year ended December 31, 2007.
(2). Compute the profit margin ratio and gross profit rate. Partin 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.
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