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The adjusted trial balance of the Sassafras Company included the following selected accounts: Debit Credit $600,000 Sales Revenue Sales Returns and Allowances Sales Discounts Cost
The adjusted trial balance of the Sassafras Company included the following selected accounts: Debit Credit $600,000 Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Freight-out (an operating expense) Advertising Expense Interest Expense Store Salaries Expense Utilities Expense Depreciation Expense A Income Tax Expense Interest Revenue (peripheral revenue) $ 25,000 9,000 390,000 1,000 20,000 15,000 7 0,000 23,000 ,000 15,000 20,000 3 Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2017. DON'T FORGET THE HEADING! And show your work 2. Calculate the profit margin ratio and gross profit rate. GROSS PROFIT RATE: PROFIT MARGIN RATIO
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