The adjusted trial balance of McCoy Company included the following selected accounts:

DebitCredit

Sales$585,000

Sales Returns and Allowances$ 50,000

Sales Discounts9,500

Cost of Goods Sold347,000

Freight-out2,000

Advertising Expense15,000

Interest Expense19,000

Store Salaries Expense74,000

Utilities Expense18,000

Depreciation Expense3,500

Interest Revenue25,000

Instructions

1. Use the above information to make a multiple-step income statement for the year ended December 31, 2016.

2. Calculate the profit margin ratio.