Presented below, in alphabetical order, is information related to the Pritt Corporation for the year 1997:

Pritt had 35,000 shares outstanding for the entire year.
Instructions

(a) Prepare in good form a single-step income statement for Pritt Corporation for 1997.

(b) Assuming a multiple-step income statement was prepared instead, compute (1) gross profit, (2) income from operations, and (3) net income.

(c) Calculate Pritt Corporation’s profit margin percentage (return on sales).

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Cost of goods sold $1,499,900 Dividends on common stock 140,000 Gain on the sale of equipment 110,000 Income tax expense Interest expense 150,000 90,000 Interest revenue 300,000 Net sales 2,142,800 Selling and administrative expenses 340,750