Financial Accounting: P5-33A The records of Grade A Steak Company list
Financial Accounting P5-33A Preparing a muli-step income statement and calculating gross profit percentage The records of Grade A Steak Company list the following selected accounts for the quarter ended April 30, 2012 Intrest Revenue 800 Accounts payable 17,000 Inventory 45,100 Accounts receivable 33,500 Note Payable, long term 47,000 Accumulated depreciation 37,600 Salary payable 2,400 Angus, Captial, Jan 31 53,000 Sales discounts 2,000 Angus, drawing 20,000 Sales returns and allowances 7,500 Cash 7,600 Sales revenue 296,100 Cost of goods sold 162,100 Selling expense 38,300 Equipment 130,600 Supplies 5,700 General expenses 16,300 Unearned sales revenue 13,300 Interest payable 1,200
Requirement 1. Prepare a muli-step income statement 2. M. Davidson, manager of the company, strives to earn gross profit percentage of at least 50% and net income percentage of 20%. Did Grade A achieve these goals? Show your calculations.