Reference no: EM131643725

Question - The Delta Company gathered the following condensed data for the year ended December 31, 2014:

Cost of goods sold $300,000

Net sales 525,000

Administrative expenses 110,000

Interest expense 18,000

Common stock dividends paid 25,000

Selling expenses 52,000

Income tax percentage 33%

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. Delta Company's assets at the beginning of the year were $800,000, and the total assets were $1,000,000 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.