Reference no: EM132521882
Question - In its income statement for the year ended December 31, 2018, Alpen Company reported the following condensed data.
Salaries and wages expense $475,000
Loss on disposal of plant assets $84,500
Cost of goods sold 986,000
Sales revenue 2,150,000
Interest expense 70,000
Income tax expense 62,900
Interest revenue 63,000
Sales discounts 150,000
Depreciation expense 320,000
Utilities expense 120,000
Required -
(a) How is the multiple-step income statement?
(b) What is the profit margin and gross profit rate?
(c) In 2017, Alpen had a profit margin of 5%. Is the decline in 2018 a cause for concern? (Ignore income tax effects.)