The records of Farm Quality Steak Company list the following selected accounts for the quarter ended April 30, 2018:

Requirements
1. Prepare a single-step income statement.
2. Prepare a multi-step income statement.
3. M. Doherty, manager of the company, strives to earn a gross profit percentage of at least 50%. Did Farm Quality achieve this goal? Show your calculations.

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400 Accounts Payable 45,000 Accounts Receivable Interest Revenue $ 17,700 38,200 37,700 30,000 5,380 25,000 7,100 154,960 132,000 1,700 Merchandise Inventory Notes Payable, long-term Salaries Payable Net Sales Revenue Rent Expense (Selling) Salaries Expense (Administrative) Office Supplies Unearned Revenue Interest Expense Depreciation Expense-Equipment (Administrative) Utilities Expense (Administrative) Delivery Expense (Selling) 54,000 Accumulated Depreciation-Equipment 2,800 Common Stock 298,000 Retained Earnings 15,100 Dividends 2,000 Cash 6,500 Cost of Goods Sold 13,100 Equipment 2,100 Interest Payable 1,320 Rent Expense (Administrative) 4,600 Salaries Expense (Selling) 3,800 Utilities Expense (Selling) 7,100 6,000 10,000