P7-5B The ledgers of Campo Leathers Inc. 2008 (its year-end). contain the following balances as of January 31, Prepare a multiple-step income statement and analyze profitability. (SO 7) (a) Net income $167,930 Advertising expense Depreciation expense $ 130,000 Inventory, January 31, 2008 Managerial salaries Miscellaneous administrative 303,400 129,800 (administrative) 53,000 Freight-in 27,900 Freight-out 6,800 expenses 22,200 Gain on the sale of equipment Insurance expense Interest expense Interest revenue Inventory, February 1, 2007 8,500 57,000 13,600 7,000 296,400 Miscellaneous selling expenses Net purchases Net sales Rent expense Sales staff wages Utilities expense 39,000 1,697,000 2,660,000 81,000 155,000 30,300 Income taxes are calculated at 30 percent of income. Campo had 84,000 shares of common stock outstanding for the entire year. Total assets amounted to $5,460,000, and common stock- holders equity was $1,966,200 at year end. Instructions (a) Prepare in good form a multiple-step income statement for Campo Leathers Inc. (b) Calculate three measures of profitability and one ratio of solvency. (c) Assume that you are considering supplying Campo Leathers with a line of wallets, key hold- ers, and other small leather goods for sale in its two stores. Is this a company for which you would like to be a supplier? What additional information would you like to have before de- ciding to become a supplier for Campo Leathers