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    Partin Company multiple-step income statement, profit margin

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    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.

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    https://brainmass.com/business/income-statement/partin-company-multiple-step-income-statement-profit-margin-427079

    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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