The Caltor company gathered the following condensed data for the years ended December 31,2007 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 (1) prepare an income statement for the year ended December 31, 2007 (20 compute the profit margin ratio and gross profit rate. Caltor company's assets at the beginning of the year were 770,000 and where 830,000 at the end of the year. to qualify for full credit you must state the formula you are using show your computations and explaining your findings.
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SOLUTION
PREVIEW
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Caltor Company
Income Statement
December 31, 2007
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Net sales
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1,279,000
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Less cost of goods sold
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710,000
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Gross profit
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569,000
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Less operating expenses:
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Administrative expenses
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239,000
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selling expenses
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45,000
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284,000
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