Response to the following problem:
Preparing a single-step income statement, preparing a multi-step income statement, and computing the gross profit percentage.
Operating Income $71,900
The records of Grade A Steak Company list the following selected accounts for the quarter ended April 30, 2015:
Interest Revenue $ 800
Merchandise Inventory 45,100
Notes Payable, long-term 47,000
Salaries Payable 2,400
Sales Discounts 2,000
Sales Returns and Allowances 7,500
Sales Revenue 296,100
Rent Expense (Selling) 21,780
Office Supplies 5,700
Unearned Revenue 13,300
Interest Expense 2,000
Depreciation Expense-Equipment (Administrative) 1,630
Utilities Expense (Administrative) 4,890
Accounts Payable $ 17,000
Accounts Receivable 33,500
Accumulated Depreciation-Equipment 37,600
Angus, Capital, (Jan. 31) 53,300
Angus, Withdrawals 20,000
Cash 7,600
Cost of Goods Sold 162,100
Equipment 130,600
Interest Payable 1,200
Rent Expense (Administrative) 9,780
Utilities Expense (Selling) 10,890
Delivery Expense (Selling) 3,630
Requirements
1. Prepare a single-step Income Statement
2. Prepare a multi-step Income Statement
3. M. Davidson, manager of the company, strives to earn a gross profit percentage of at least 50%. Did Grade A achieve this goal? Show your calculations.