Problem 2-7 Multiple-Step Income Statement and Profit Margin

Refer to the list of income statement items in Problem 2-6. Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

Required

1. Prepare a multiple-step income statement for the year ended December 31, 2012.

2. What advantages do you see in this form for the income statement?

3. Compute Shaw