Use the data for Atlantis Aquatics, Inc. from E5-8A.
From E5-8A
Cash ............... $ 3,700
Equipment ............ 13,700
Accounts Payable ......... 4,500
Common Shares ......... 35,000
Long-Term Notes Payable ...... 10,000
General Expenses ......... 18,200
Wages Payable ............ 1,100
Supplies ............ 900
Building ............ 125,000
Sales Returns and Allowances ...... 4,800
Prepaid Rent ............ 800
Retained Earnings ........ 13,800
Inventory ............ 1,700
Cost of Goods Sold ....... $136,400
Accumulated Depreciation, Equipment . 6,100
Unearned Revenues ....... 1,900
Sales Revenue ............ 243,500
Accounts Receivable ....... 3,200
Accumulated Depreciation, Building ... 18,500
Mortgage Payable (Long-Term) ...... 37,000
Dividends ............ 34,000
Sales Discounts ........ 2,200
Selling Expenses ........ 26,800
Requirements
1. Prepare Atlantis Aquatics’ multi-step income statement.
2. Calculate the gross profit percentage.
3. The gross profit percentage for 2012 was 38.7%. Did the gross profit percentage improve or deteriorate during 2013?