Multiple-Step Income Statement and Profi t Margin Refer to the list of income statement items in Problem 2-6A. Assume that Corbin Enterprises classifi es all operating expenses into two categories: (1) selling and (2) general and administrative.

Required 1. Prepare a multiple-step income statement for the year ended December 31, 2010.

2. What advantages do you see in this form for the income statement?

3. Compute Corbin’s profi t margin.

4. Comment on Corbin’s profi tability. What other factors need to be taken into account to assess Corbin’s profi tability?

AppendixLO1