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In its income statement for the year ended December 31 2017 Darren Company reported the following condensed data Salaries and wages Loss on disposal of plant Expense

In its income statement for the year ended December 31, 2017, Darren Company reported the following condensed data. Salaries and wages Loss on disposal of plant Expense........................$465,000......................assets...................$ 83,500 Cost of goods sold.............987,000.............Sales revenue..................2,210,000 Interest expense..................71,000......Income tax expense.....................25,000 Interest revenue..................65,000............Sales discounts...................160,000 Depreciation expense.........310,000..........Utilities expense...................110,000 Instructions (a) Prepare a multiple-step income statement. (b) Calculate the profit margin and gross profit rate. (c) In 2016, Darren had a profit margin of 5%. Is the decline in 2017 a cause for concern? (Ignore income tax effects.)

Apr 05 2020 View more View Less

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