The 31 December 20X3 income statement accounts and other information of Lyon's Fashion are shown below.

Required:
a Prepare a classified 20X3 income statement for Lyon's Fashion.
b Calculate the profit margin for \(20 \mathrm{X} 3\). If the profit margin for \(20 \mathrm{X} 2\) was 12.5 per cent, what can be said about the \(20 \mathrm{X} 3\) results?

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Advertising expense Depreciation expense: shop equipment Depreciation expense: building (shop) Depreciation expense: office equipment Depreciation expense: building (office) Interest revenue Interest expense Cost of goods sold Insurance expense Sales (net) Office supplies expense Shop supplies expense Sales salaries expense Office salaries expense Utilities expense (shop) Utilities expense (office) GA 6450 2400 5550 3450 1 650 2550 1350 95 850 525 153 000 720 1200 5% of net sales 3 900 2250 600