The adjusted trial balance of Entity B included the following selected accounts:

Debit Credit

Sales Revenue $645,000

Sales Returns and Allowances $ 50,000

Sales Discounts 9,500

Cost of Goods Sold 396,000

Freight-Out 2,000

Advertising Expense 15,000

Interest Expense 19,000

Salaries and Wages Expense 84,000

Utilities Expense 23,000

Depreciation Expense 3,500

Interest Revenue 25,000

1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2022.

2. Calculate the profit margin and gross profit rate.