Presented Below Is Information for Zales Company for the Month

Essay

Presented below is information for Zales Company for the month of January 2014. $$\begin{array} { l r l r } \text { Cost of goods sold } & \$ 280,000 & \text { Rent expense } & \$ 35,000 \\\text { Freight-0ut } & 7,000 & \text { Sales discounts } & 8,000 \\\text { Insurance expense } & 12,000 & \text { Sales returns and allowances } & 13,000 \\\text { Salaries and wages expense } & 42,000 & \text { Sales revenue } & 421,000\end{array}$$ Instructions
(a) Prepare a multiple-step income statement.
(b) Calculate the profit margin and the gross profit rate.