Solution-Prepare a multiple-step income statement

Prepare a multiple-step income statement

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Reference no: EM13531722

In its income statement for the year ended December 31, 2012, Misra Company reported the following condensed data.

Administrative expenses	$465,000	Loss on disposal of
Cost of goods sold	987,000	plant assets	83,500
Interest expense	71,000	Net sales	2,050,000
Interest revenue	65,000	Income tax expense	25,000
Selling expenses	420,000

Instructions

(a) Prepare a multiple-step income statement.

(b) Calculate the profit margin ratio and gross profit rate.

(c) In 2011, Misra had a profit margin ratio of 5%. Is the decline in 2012 a cause for concern? (Ignore income tax effects.)

Reference no: EM13531722

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Prepare a multiple-step income statement

Reference no: EM13531722

Reference no: EM13531722

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