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Multiple-Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order,...

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Accounting

Multiple-Step Income Statement and Profit Margin

The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year:

Advertising expense $1,588 Interest expense $1,493
Commissions expense 2,483 Interest revenue 1,354
Cost of goods sold 29,289 Rent revenue 7,066
Depreciation expense - office building 2,664 Salaries and wages expenseoffice 11,560
Income tax expense 1,417 Sales revenue 48,047
Insurance expense - salespersons auto 2,112 Supplies expenseoffice 888

Required:

Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

Other revenues and expenses:
Interest expense
Operating revenues
Advertising expense
Excess of other revenues over other expenses
Income before taxes
Income tax expense
Net income

Compute Shaw's profit margin. Round your answer to one decimal place. _ %

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