The following information is available for Partin Company:

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.