Prepare Waldron Video Sales' single-step income statement for 2017, using the data from Exercise 5-13. Compute the gross margin percentage and compare it with last year's value of 49 percent for Waldron Video Sales. Does this two-year trend suggest better or worse profitability during the current year?

In Exercise 5-13

Selected amounts from the accounting records of Waldron Video Sales for the year ended December 31, 2017, follow:

Transcribed Image Text:

Journal Entries Dec. 31 Sales Revenue 281,400 Interest Revenue 1,800 Income Summary 283,200 31 Income Summary 254,400 Cost of Goods Sold Sales Discounts Sales Returns and Allowances Selling Expenses General Expenses 161,200 12,600 6,900 57,800 15,900 31 Income Summary 28,800 B. Waldron, Capital 28,800 31 B. Waldron, Capital 28,000 B. Waldron, Withdrawals 28,000