Acc101 Financial Accounting: P5-27A The accounting records of Speed Up Auto Parts

Acc101 Financial Accounting

The accounting records of Speed Up Auto Parts on august 31, 2008 list the following amounts:
Cost of goods sold 104,000
Sales discounts 4,600
Equipment 65,200
Salary payable 2,200
Accounts payable 19,500
Cam, engine, withdrawals 31,600
Sales returns and allowances 14,300
Selling expenses 21,400
Cash 15,700
Inventory august 31, 2007 40,000
Inventory august 31 208 43,200
Sales revenue 206,500
Notes payable 6,100
Accumulated depreciation equipment 17,700
Cam engine capital 66,000
General and administrative expenses 15,100
Accounts receivable 6,900

1. Prepare a multi-step income statement to show the computation of Speed Up Auto Parts net sales revenue, gross profit and net income for the year ended august 31 2008.
2. Cam Engine, owner of the business, strives to earn gross profit of 85 500 and net income of 45 000. Did cam achieve these goals? Explain.
3. Compute the company gross profit percentage and rate of inventory turnover for 2008.
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