The records of Quality Cut Steak Company list the following selected accounts for the quarter ended April 30, 2016:
Interest Revenue................. $ 500
Merchandise Inventory................. 45,300
Notes Payable, long-term................. 52,000
Salaries Payable................. 2,400
Sales Discounts................. 5,500
Sales Returns and Allowances............. 8,500
Sales Revenue.................... 306,000
Rent Expense (Selling)............. 21,400
Office Supplies................. 6,300
Unearned Revenue................. 13,200
Interest Expense................. 1,700
Depreciation Expense—Equipment (Administrative) ..... 1,300
Utilities Expense (Administrative).......... 4,300
Accounts Payable.................$ 16,900
Accounts Receivable................. 38,000
Accumulated Depreciation—Equipment......... 36,800
Common Stock................. 32,000
Retained Earnings................. 10,200
Dividends..................... 17,000
Cash...................... 7,400
Cost of Goods Sold................. 160,600
Equipment.................... 130,000
Interest Payable................. 1,000
Rent Expense (Administrative).......... 9,600
Utilities Expense (Selling)............. 10,600
Delivery Expense (Selling)............. 3,500
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 Quality Cut achieve this goal? Show your calculations.