(TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts.

	Debit	Credit
Sales		$575,000
Sales returns and allowances	$ 50,000
Sales discounts	9,500
Cost of goods sold	347,000
Freight-out	2,000
Advertising expense	15,000
Interest expense	19,000
Store salaries expense	74,000
Utilities expense	18,000
Depreciation expense	3,500
Interest revenue		25,000

Instructions: 1: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. 2: Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. (Points : 30)