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Partin Company multiple-step income statement, profit margin

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.

Solution Summary

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.

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