The following information is available for Partin Company:
Sales Returns and Allowances
Cost of Goods Sold
(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.
Your tutorial creates a multi-step income statement in Excel (click in cells to see computations). It also computes gross profit rate, profit margin and return on average assets. Income taxes are ignored.