Exercise 2. Multiple-Step Income Statements (30 marks) 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 $2,450,000 and average total equity of $1,825,000 (dollar amounts in thousands, except earnings per share). a) Prepare an income statement for the year in a multiple-step format. b) Compute the (1) gross profit rate, (2) net income as a percentage of net sales, (3) return on assets, and (4) return on equity for the year. (Round computations to the nearest one-tenth of 1 percent.) c) Explain why interest revenue is not included in the company's gross profit computation