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Question(s) / Instruction(s):

ACCT 2121 Nutboy Theater Company reported the following single-step income statement.

 

       NUTBOY THEATER COMPANY

Income Statement

For the year ended December 31, 2010

  Revenues                          

  Ticket sales                                                       $50,000 

  Concession sales                                           2,500 

  Interest revenue                                          200 

  Other revenue                                                               50

 Total revenues                                                52,750

  Expenses                           

  Salaries and wage expense                      30,000 

  Advertising expense                                   8,000 

  Utilities expense                                           7,000 

  Income tax expense                                    2,500

 Total expenses                                                               47,500

  Net income                                                      $5,250 

Required:

1              Prepare a multistep income statement for the Nut boy theater company.

2              Calculate the net profit margin.

3              Compare net profit margin of 2010 to the net profit margin of 8% earned in 2009. In which year did the  company generate more profit from each dollar of sales?

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