Question

In its income statement for the year ended December 31, 2010, MarisCompany reported the following condensed data.

Administrative expense $435,000 Selling expenses $490,000
Cost of goods sold 987,000 Loss on sale of equipment 83,500
Interest expense 68,000 Net sales 2,050,000
Interest revenue 65,000 Income tax expense 20,000

(a) Complete the multiple-step income statement below. (Listmultiple entries from largest to smallest amounts, e.g. 10, 5,1.)


MARIS COMPANY
Income Statement


$



Gross profit
Operating expenses
$



Total operating expenses


Income from operations
Other revenue and gains

Other expenses and losses
$







Income before income taxes



Net income
$


(b) Calculate the profit margin ratio and the gross profit rate.(Round to three decimal places, e.g. 0.444.)


Profit margin ratio
Gross profit rate