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The ledgers of Mid City Galleries Inc. contain the following balances as of December 31, 2008.
Commissions expense on art sales
Depreciation expense (administrative)
Inventory, December 31
Loss on the sale of office equipment
Miscellaneous administrative expenses
Miscellaneous selling expenses
Wages and salaries
Income taxes are calculated at 30 percent of income. The galleries had 90,000 shares of common stock outstanding for the entire year. Total assets amounted to $7,509,000, and common stockholder's equity was $3,975,400.
Complete in good form the multiple-step income statement for Mid City Galleries.
Calculate three measures of profitability and one ratio of solvency.
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