Exercise 14.5 Multiple-Step Income Statements (LO14-5)

SPINX, INC. Statement of Earnings For the Year Ended December 31, CURRENT YEAR
Net sales	$	4,395,253
Costs and expenses:
Cost of goods sold		(2,821,455	)
Operating expenses		(1,004,396	)
Interest revenue		15,797
Earnings before income tax	$	585,199
Income tax expense		(204,820	)
Net earnings	$	380,379
Earnings per share	$	1.70

Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of $1,917,000 (dollar amounts in thousands, except earnings per share).

a. Prepare an income statement for the year in a multiple-step format.

b-1. Compute the gross profit rate.

b-2. Compute the net income as a percentage of net sales.

b-3. Compute the return on assets.

b-4. Compute the return on equity for the year.