Reference no: EM131820159

Problem

The Alpha Company gathered the following condensed data for the year ended December 31, 2014:

Preferred stock dividends paid	$50,000
Net Sales	825,000
Interest revenue	10,000
Selling expenses	225,000
Administrative expenses	125,000
Cost of Goods Sold	400,000
Income tax percentage	30%

Instructions:

(1) Prepare a multiple-step income statement for the year ended December 31, 2014.

(2) Compute the gross margin percentage and net profit margin ratio. Alpha Company's assets at the beginning of the year were $1,500,000, and the assets were $1,400,000 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.