The records of Hill Tower Steak Company list the following selected accounts for the quarter ended September 30, 2012:

Requirements
1. Prepare a multi-step income statement.
2. M. Davidson, manager of the company, strives to earn gross profit percentage of at least 50% and net income percentage of 20%. Did Hill Tower achieve these goals? Show yourcalculations.

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400 Accounts payable 45,700 Accounts receivable Interest revenue Inventory Note payable, long-term Salary payable Sales discounts Sales returns and allowances Sales revenue Selling expense Supplies Unearned sales revenue 16,500 33,900 42,000 Accumulated depreciation 37,500 52,900 18,500 8,100 162,400 125,000 16,100 1,200 3,400 Holstein, capital, Jun 30 2,200 Holstein, drawing 8,400 Cash 296,700 Cost of goods sold 37,500 Equipment 6,000 General expenses 13,200 Interest payable