The Caltor Company gathered the following condensed data for the year ended December 31, 2010:

The Caltor Company gathered the following condensed data for the year ended December 31, 2010:

Cost of goods sold       $ 710,000

Net sales                       1,279,000

Administrative expenses     239,000

Interest expense              68,000

Dividends paid                 38,000

Selling expenses             45,000

Instructions:

1.  Prepare a multiple-step income statement for the year ended December 31, 2010.

2.  Compute the profit margin ratio and gross profit rate. Caltor Company's assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. State the formula you are using, show your computations and explain your findings.