Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $151,600, selling expenses of $38,270, general and administrative expenses of $34,620, interest expense of $730, and income tax expense of $17,492. Holly's stockholders' equity was $305,000 at the beginning of the year and $365,000 at the end of the year. The company has 25,000 shares of stock outstanding at the end of the year. Required: and is a good indicator of its profitability. For the calculation of its profit margin to be useful, two key Holly's profit margin is factors should be used: and