Profit margin ratio and gross profit rate

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Reference no: EM13144141

The Caltor Company gathered the following condensed data for the year ended December 31, 2007:

Cost of goods sold $ 710,000
Net sales 1,279,000
Administrative expenses 239,000
Interest expense 68,000
Dividends paid 38,000
Selling expenses 45,000

Instructions:

(1). Prepare an income statement for the year ended December 31, 2007.

(2). Compute the profit margin ratio and gross profit rate. Caltor Company's assets at the beginning of the year were $770,000 ,and 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.

Reference no: EM13144141

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