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Financial Accounting

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Problem 2-7
The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the year ended December 31, 2008.
Advertising expense $1,500
Commission expense $2,415
Cost of goods sold $29,200
Depreciation expense - office building $2,900
Income tax expense $1,540
Insurance expense - salesperson's auto $2,250
Interest expense $1,400
Interest revenue $1,340
Rent revenue $6,700
Salaries and wages expense - office $12,500
Sales revenue $48,300
Supplies expense - office $890

1. Prepare a multiple-step income statement for the year ended December 31, 2008
2. Compute Shaw's profit margin

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Solution Summary

This solution creates a multi-step income statement and calculates the profit margin.

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