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Multi-step income statement

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Create a multi-step income and profit statement. The corporation classifies all expenses into two categories: 1)selling and 2) general and administrative.
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 (sales person auto) 2,250
Interest expense 1,400 Interest revenue 1,340
Rent revenue 6,700 salaries +wages expense (office) 12,560
Sales revenue 48,300 supplies expense (office) 890

1) Prepare a statement ended DEC. 31, 2008
2) What advantages do u see in this form for income statement
3) Compute Wendy's profit margin
4) Comment on the profitability, what other factors need to be taken into account to assess Wendy's profitability?

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Solution Summary

A multi-step income statement is examined. A statement which ended December 31, 2008 is prepared.

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