The following information is taken from the T-accounts of the Harburn Hobby Shop for the month of October of the current year.

Cost of goods sold $53,000 Sales revenue (net) 88,000 Selling expenses 5,000 Interest expense 1,000 General and administrative expenses 12,000 Required: (1) Prepare a classified income statement for Harburn.

(2) Compute Harburn’s profit margin. lo1