5.(TCO B) The Alpha Company gathered the following condensed data for the year ended December 31, 2014:

Preferred stock dividends paid

$50,000

Net Sales

825,000

Interest revenue

10,000

Selling expenses

225,000

Administrative expenses

125,000

Cost of Goods Sold

400,000

Income tax percentage

30%

Instructions:
(1) Prepare a multiple-step income statement for the year ended December 31, 2014. (30 points)

(2) Compute the gross margin percentage and net profit margin ratio. Alpha Company’s assets at the beginning of the year were $1,500,000, and the assets were $1,400,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings. (6 points) (Points : 36)