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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
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 they 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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