You have been provided with the following account balances for Broiler Ltd. for the years ended September 30, 2020, and 2021:

Required

a. Prepare a multi-step comparative statement of income for Broiler Ltd. for 2020 and 2021.

b. Determine Broiler’s gross margin percentage for each year. In which year was Broiler more successful in this area?

c. Did the year with the superior gross margin percentage also have the largest net income? Explain why or why not.

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2021 2020 $ 220,000 $ 300,000 Advertising expense Cost of goods sold 1,546,000 1,366,000 General and administrative expenses 222,000 155,000 Income tax ex pense 500,000 75,000 Interest revenue 3,200 4,000 15,000 Rent expense 12,000 Sales revenue 3,750,400 2,450,000 Utilities expense 90,000 66,000 Wages expense 403,000 376,000