The adjusted trial balance of Sporan Corporation included the following selected accounts:

		Debit			Credit
Sales			$575,000
Sales returns and allowances	$ 55,000
Sales discounts	10,500
Cost of goods sold	347,000
Freight out	2,000
Advertising expense	15,000
Interest expense	19,000
Store salaries expense	45,000
Utilities expense	18,000
Amortization expense	3,296
Income tax expense	32,000
Interest revenue			15,000

Required:

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

2. Calculate the net profit margin (percentage) and gross profit margin (percentage). Briefly explain the meaning of these two measures.