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    Income statement and compute the profit margin

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    Kit Karson, the owner of Karson Kutlery and Knives, LLC is preparing a loan application. Using the data below (only), prepare an income statement and compute the profit margin on sales. Include totals for gross margin, sales general, and administrative earnings before interest and taxes (sometimes called "income from operations"), pretax income, and net income.

    Net Sales $1,600,652
    Hourly Labor Costs $520,391
    Material Costs $420,231
    Marketing $43,980
    Depreciation $58,122
    Research and Development $25,000
    Administrative $178,325
    Interest Expense $21,608
    Taxes  30% of pretax Income

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    https://brainmass.com/economics/finance/income-statement-compute-profit-margin-464996

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    Solution:

    Net Sales $1,600,652
    Hourly Labor Costs $520,391 ...

    Solution Summary

    This solution helps prepare an income statement and compute the profit margin on sales. It also includes totals for gross margin, sales general, and administrative earning before interest and taxes.

    $2.19