1. Use the data in Problem 5-14B to prepare Olsevik Janitorial Supplies' multi-step income statement for the year ended July 31, 2017.

2. Bev Olsevik, owner of the company, strives to earn a gross margin percentage of at least 50 percent and a net income percentage of 20 percent (Net income percentage = Net income ÷ Net sales revenue). Did Olsevik Janitorial Supplies achieve these goals? Show your calculations.

In Problem 5-14B

Selected accounts of Olsevik Janitorial Supplies, at July 31, 2017, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and the General Expenses account. Olsevik Janitorial Supplies uses the periodic inventory system.

Accounts Payable Accounts Receivable Accumulated Amortization- 102,000 117,000 Inventory: July 31, 2016.$ Inventory: July 31, 201 .$730,000 Notes Payable, Long-Term 500,000 1,361,000 23,000 25,000 52,800 1,891,200 317,250 16,200 34,800 Equipment B. Olsevik, Capita. B. Olsevik, Withdrawal 61,500 Purchases 863,400 ...42,300 Salaries Payable 46,200 Sales Returns and Allowances.... 484,000 Sales Revenue 284,250 Selling Expenses Equipment General Expenses Interest Expense Interest Payable Interest Revenue 10,200 Supplies 8,800 Unearned Sales Revenue 1,500