Response to the following problem:
Presented below is information for Obley Company for the year ended March 31, 2010.
Cost of goods sold $212,000
Rent expense $32,000
Freight-out 7,000
Sales discounts 8,000
Insurance expense 12,000
Sales returns and allowances 13,000
Salary expense 58,000
Sales 370,000
Instructions
(a) Prepare a multiple-step income statement. (List amounts from largest to smallest eg 10, 5, 3, 2.)
(b) Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 10.50.)