Question No-2:

The following balances were taken from the Marytime Inc. on December 31, 2017.

Cash	$14,500	Cost of goods sold	363,400
A/C receivable	11,100	Freight out	7,600
Inventory	29,000	Advertising expense	12,000
Prepaid Insurance	2,500	Salaries and Wages expense	56,000
Equipment	95,000	Utilities expense	18,000
Drawings	12,000	Rent expense	24,000
Sales return and allowance	6,700	Depreciation expense	9,000
Sales discount	5,000	Insurance expense	4,500
Interest expense	3,600	Accounts Payable	10,600
Accumulated depreciation-Equipment	18,000	Capital	81,000
Notes Payable	25,000	Sales Revenue	536,800

Requirements:

5. Prepare a multiple-step income statement as of December 31, 2017.
6. Calculate gross profit rate.