The following information is taken from the T-accounts of Foile’s Music Store for the current year ended December 31.

Depreciation expense: office equipment $ 1,600 Interest revenue 725 Sales salaries expense 8,200 Rent expense 1,800 Depreciation expense: store equipment 2,400 Sales revenue (net) 95,100 Office salaries expense 4,000 Interest expense 250 Office supplies expense 600 Cost of goods sold 59,400 Advertising expense 360 Of the rent expense, 5/6 is applicable to the store and 1/6 is applicable to the office.

Required: (1) Prepare a classified income statement for Foile’s Music Store for the current year.

(2) Compute the profit margin.

(3) Compute the gross profit percentage. Does this percentage fall near the high or the low end of the range of typical retail companies’ gross profit percentages? lo1