In its income statement for the year ended December 31, 2017, Darren Company reported the following condensed data.

(a) Prepare a multiple-step income statement.

(b) Calculate the profit margin and gross profit rate.

(c) In 2016, Darren had a profit margin of 5%. Is the decline in 2017 a cause for concern?
(Ignore income tax effects.)

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Salaries and wages expense Cost of goods sold $465,000 987,000 Interest expense 71,000 Income tax expense Interest revenue 65,000 Sales discounts Depreciation expense 310,000 Utilities expense Loss on disposal of plant assets Sales revenue $ 83,500 2,210,000 25,000 160,000 110,000