Chapter 2 Homework eBook Question Content Area Multiple-Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year: Advertising expense $1,398 Interest expense $1,513 Commissions expense 2,476 Interest revenue 1,446 Cost of goods sold 29,207 Rent revenue 7,284 Depreciation expense - office building 2,877 Salaries and wages expenseoffice 11,538 Income tax expense 1,564 Sales revenue 48,031 Insurance expense - salespersons auto 2,061 Supplies expenseoffice 832 Required: Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative. Question Content Area 1. Prepare a multiple-step income statement for the current year. Shaw Corporation Income Statement For the Current Year $- Select - - Select - $- Select - Operating expenses: Selling expenses: $- Select - - Select - - Select - Total selling expenses $fill in the blank 84a0caf8dffc017_13 General and administrative expenses: $- Select - - Select - - Select - Total general and administrative expenses fill in the blank 84a0caf8dffc017_20 Total operating expenses fill in the blank 84a0caf8dffc017_21 $- Select - Other revenues and expenses: $- Select - - Select - - Select - Excess of other revenues over other expenses fill in the blank 84a0caf8dffc017_30 $- Select - - Select - $- Select - Question Content Area 2. What advantage do you see in multi-step income statement? 3. Compute Shaw's profit margin. Round your answer to one decimal place. fill in the blank de27200f507b06a_2 % 4. Reflect on the profit margin determined above. What does this mean?