Part A$.$ The following information is available for Entity A:

Instructions

Use the above information to prepare a multiple$-$step income statement for the year

ended December $31,2024.$ Please look at Illus. $5\mathrm{.}12$ in the text for an example. The

income tax rate is $23\%.$ Check figures: Income from operations is $$160,300.$ Net

income is $$217,217.$

Compute the profit margin and the gross profit rate. Show and label calculations.

Suggest at least three ways these measures might be materially improved and net

income increased. Be sure to consider the relationship between net sales, cost$-$of$-$

goods$-$sold and gross profit.

Last year, the profit margin was $15\%.$ Is the increase in the profit margin this year

sustainable, i$.$e$.$ likely to continue? $($Hint: consider what item was largely responsible

for such an increase.$)$