The records of Farm Fresh Beef Company list the following selected accounts for the quarter ended September 30, 2016:
Interest Revenue................. $ 700
Merchandise Inventory............. 45,500
Notes Payable, long-term............. 44,000
Salaries Payable................ 2,900
Sales Discounts................ 4,500
Sales Returns and Allowances......... 8,300
Sales Revenue...................317,800
Rent Expense (Selling)............. 21,800
Office Supplies................ 6,100
Unearned Revenue................ 13,900
Interest Expense................. 1,600
Depreciation Expense—Equipment (Administrative) ... 1,305
Utilities Expense (Administrative)......... 4,300
Accounts Payable................$17,200
Accounts Receivable................. 33,300
Accumulated Depreciation—Equipment...... 36,800
Common Stock................. 32,000
Retained Earnings................ 5,105
Dividends.................... 25,000
Cash....................... 7,900
Cost of Goods Sold................158,600
Equipment...................130,500
Interest Payable................. 700
Rent Expense (Administrative).......... 9,000
Utilities Expense (Selling)............. 10,000
Delivery Expense (Selling)............. 3,400
Requirements
1. Prepare a single-step income statement.
2. Prepare a multi-step income statement.
3. J. Douglas, manager of the company, strives to earn a gross profit percentage of at least 50%. Did Farm Fresh Beef achieve this goal? Show your calculations.