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 $1,558 Interest expense $1,322 Commissions expense 2,435 Interest revenue 1,369 Cost of goods sold 29,258 Rent revenue 6,780 Depreciation expense - office building 2,657 Salaries and wages expense-office 11,535 Income tax expense 1,450 Sales revenue 48,117 Insurance expense - salesperson's auto 2,228 Supplies expense-office 951 Required: Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative. 48,117 29,258 1. Prepare a multiple-step income statement for the current year. Shaw Corporation Income Statement For the Current Year Sales revenue Cost of goods sold Gross profit Operating expenses: Selling expenses: Advertising expense Commissions expense 2,435 Insurance expense - salesperson's auto 1,558 2,228 Total selling expenses General and administrative expenses: Depreciation expense - office building 2,657 11,535 Salaries and wages expense - office Supplies expense - office 951 Total selling expenses General and administrative expenses: Depreciation expense - office building 2,657 Salaries and wages expense - office 11,535 Supplies expense - office 951 Total general and administrative expenses Total operating expenses Loss from operations OD Other revenues and expenses: Interest expense 1,322 Interest revenue 00 1,369 Rent revenue 6,780 Excess of other revenues over other expenses Income before taxes Income tax expense 1,450 Net income 2. What advantage do you see in multi-step income statement? 3. Compute Shaw's profit margin. Round your answer to one decimal place. % 4. Reflect on the profit margin determined above. What does this mean