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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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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.

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

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