Multiple-Step Income Statement and Profit Margin Refer to the list of income statement items in…

Multiple-Step Income Statement and Profit Margin

Refer to the list of income statement items in Problem 2-6A. Assume that Corbin Enterprises classifies

all operating expenses into two categories: (1) selling and (2) general and administrative.

Required

1. Prepare a multiple-step income statement for the year ended December 31, 2008.

2. What advantages do you see in this form for the income statement?

3. Compute Corbin’s profit margin.

4. Comment on Corbin’s profitability. What other factors need to be taken into account to assess

Corbin’s profitability?