Presented below is information for Acme Supply Co, for the month of January 2025.

Cost of goods sold $280,000 Rent expense $35,000

Freight-out 7,000 Sales discounts 8,000

Insurance expense 12,000 Sales returns and allowances 13,000

Salaries and wages expense 42,000 Sales revenue 421,000

Instructions:

(a) Prepare a multiple-step income statement.

(b) Calculate the profit margin and the gross profit rate.