1. Use the data of Problem 5-6B to prepare Bata Building Supplies' multi-step income statement for the year ended July 31, 2014.
In Problem 5-6B
Selected accounts of Bata Building Supplies, at July 31, 2014, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the accounts Selling Expenses and General Expenses. Bata Building Supplies uses the perpetual inventory system.

2. Bev Bata, 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 Bata Building Supplies achieve these goals? Show your calculations.

Accounts Payable.. $ 31,000 Inventory: July 31, 2014.. Notes Payable, Long-Term. Salaries Payable. $262,500 Accounts Receivable. 78,500 250,000 Accumulated Amortization- 11,500 Store Equipment.. B. Bata, Capital . B. Bata, Withdrawals Cash . Cost of Goods Sold.. General Expenses . Interest Expense . Interest Payable . 30,750 Sales Discounts. 12,500 451,700 Sales Returns and 41,150 Allowances.. 26,400 3,100 Sales Revenue. 945,600 803,000 158,625 Selling Expenses. Store Equipment. 122,125 242,000 5,100 Supplies. 8,100 4,400 Unearned Sales Revenue. 37,400 Interest Revenue. 750