Advertising expense 9,000 Cost of goods sold 150,000 depreciation expense - comp

Question

Advertising expense 9,000
Cost of goods sold 150,000
depreciation expense - computer 4,500
Dividend revenue 2,700
Income tax expense 30,700
Interest expense 1,900
Retn expense - office 26,400
Rent expense - salesperson's car 18,000
Sales revenue 350,000
Supplies expense - office 1,300
Utilities expense 6,750
Wages expense - office 45,600

Assume that Corbin Enterprises classifies all operating expenses in two categories
(1) selling and (2) general and administrative

Required
Prepare a multiple-step income statement for the year ended December 31, 2008
What advantages do you see in this form for the income statement ?
Compute Corbins profit margin
Comment on Corbin's profitability. What other factors need to be taken into account to assess
Corbin's profitability

Explanation / Answer

Look at the link below: https://docs.google.com/spreadsheet/ccc?key=0AqFfmpAerqFgdGNLMGFBV2hNeWZpQWluZklIcUl0UXc#gid=0 If you cant open it, comment below I can email you a original file.

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