The adjusted trial balance of Foster Products Company included the following balances for 12- 31-15, which was the first year of operations

Accounts Payable $ 18000 -Credit

Accumulated Depreciation 35000 -Credit

Advertising Expense 17800 -Debit

Cash 7400 -Debit

Common Stock 3000 -Credit

Cost of Goods Sold 75800 -debit

Depreciation Expense 3000 -Debit

Dividends 2000 _debit

Equipment 81800 -Debit

InsuranceExpense 2800 -Debit

Interest Revenue 500 -Credit

Inventory 24000-Debit

Prepaid Insurance 3800 -Debit

Rent Expense 26000 -Debit

Retained Earnings 40000 -Credit

Salaries Expense 63000 -Debit

Sales 226600 -Credit

Sales Discounts 1000 Debit

Sales Returns and Allowances 5000 -Debit

Supplies 3700 -Debit

Supplies Expense 6000 Debit ________

Total debit 323100 Total Credit 323100

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities.

1. Prepare a Multiple Step Income Statement for 12-31-15. (Categorize the Operating Expenses into Selling Expenses and General/Administrative Expenses.

2. Calculate the Following Ratios AND provide a brief interpretation about each one. a. Return on Assets b. Gross Margin Ratio c. Profit Margin