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

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.
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