1. Use the data of Problem 5-6A to prepare Anarel Distributors' multi-step income statement for the year ended May 31, 2014.
2. Corry Anarel, owner of the company, strives to earn a gross margin of at least 50 percent and a net income of 20 percent (Net income percentage = Net income, Net sales revenue). Did Anarel Distributors achieve these goals? Show your calculations.
Data from problem 5-6A

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$ 71,000 Interest Payable.. Accounts Payable. 2,800 2$ Accounts Receivable . 107,500 Interest Revenue.. 600 Inventory, May 31, 2014.. 167,100 Accumulated Amortization- Equipment. 96,900 Notes Payable, Long-Term 114,800 C. Anarel, Capital . C. Anarel, Withdrawals.. Salaries Payable . 167,800 7,200 66,900 Sales Discounts. 26,500 Cash. 19,900 Sales Returns and Allowances. Cost of Goods Sold.. 1,086,900 45,900 Sales Revenue. Equipment. 340,800 1,991,500 Selling Expenses. General Expenses. Interest Expense 206,800 357,200 9,200 33,100 Supplies.. 15,200 Unearned Sales Revenue..