Problem - Multiple- Step Income Statement and Profit Margin

A Single- Step Income Statement - The following income statement items, arranged in alphabetical order, are taken from the records of Corbin Enterprises for the year ended December 31, 2008:

Advertising expense $ 9,000

Cost of goods sold 150,000

Depreciation expense- computer 4,500

 Dividend revenue 2,700

 Income tax expense 30,700

 Interest expense 1,900

Rent expense- office 26,400

 Rent expense- salesperson's car 18,000

Sales revenue 350,000

 Supplies expense- office 1,300

 Utilities expense 6,750

Wages expense- office 45,600

Prepare a multiple- step income statement for the year ended December 31, 2008. What advantages do you see in this form for the income statement? Compute Corbin's profit margin. Comment on Corbin's profitability. What other factors need to be taken into account to assess Corbin's profitability?