Question

The adjusted trial balance of Sandhu Corporation at December 31, 2022 included the following selected accounts:
                                                                                               Debit        Credit
...... Advertising expense................................................ $ 15,000
...... Cost of goods sold..................................................... 347,000
...... Depreciation expense.................................................... 3,296
...... Freight out..................................................................... 2,000
...... Income tax expense.................................................... 32,000
...... Interest expense.......................................................... 19,000
...... Interest income.................................................... .................. $15,000
...... Sales revenue......................................................................... 509,500
...... Salaries expense................................................. ....... 45,000
...... Utilities expense.................................................. ....... 18,000
Instructions
(a)   Use the above information to prepare a multiple-step statement of income for the year ended December 31, 2022.
(b)   Calculate the gross profit margin and the profit margin for 2022.

Answer 1