Prepare multi-step income statement and calculate profitability ratios.
In its income statement for the year ended December 31, 2025, Darren Company reported the following condensed data.
	Salaries and wages expense	$ 734,500
	Cost of goods sold	786,543
	Interest expense	65,222
	Interest revenue	85,222
	Depreciation expense	240,000
	Loss on disposal of plant assets	47,000
	Sales revenue	3,240,560
	Income tax expense	85,000
	Sales discounts	135,000
	Utilities expense	189,000
Instructions
a.	Prepare a multiple-step income statement.
b.	Calculate the profit margin and gross profit rate.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells.
a.	Darren Company
	Income Statement
	For the Year Ended December 31, 2025
	Sales revenue
	Less: Sales discounts
	Net sales
	Cost of goods sold
	Gross profit
	Operating expenses
	Salaries and wages expense
	Depreciation expense
	Utilities expense
	Total operating expenses
	Income from operations
	Other revenues and gains
	Interest revenue
	Other expenses and losses
	Loss on disposal of plant assets
	Interest expense
	Income before income taxes
	Income tax expense
	Net income
	Profit margin
b.	Net income
	Net sales
	Profit margin
	Gross profit rate
	Gross profit
	Net sales
	Gross profit rate