In its income statement for the year ended December 31, 1998, Chevalier Company reported the following condensed data:

\section*{Instructions}

(a) Prepare a multiple-step income statement.

(b) Calculate the profit margin ratio, gross profit rate, and operating expenses to sales ratio.

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Selling expenses $690,000 989,000 70,000 45,000 Loss on sale of equipment 10,000 Net sales 2,359,000 Administrative expenses Cost of goods sold Interest expense Interest revenue $435,000