Use the data for Paul€™s Furniture, Inc., from E4-32B.

Requirements
1. Prepare Paul€™s Furniture Inc.€™s multi-step income statement.
2. Calculate the gross profit percentage.
3. The gross profit percentage for 2011 was 42.6%. Did the gross profit percentage improve or deteriorate during2012?

Cash Equipment Accounts Payable Common Stock. Long-Term Notes Payable6 General Expense. Salaries Payab. Supplies Building Sales Returns and S 10,400 Cost of Goods Sold.. 32,000 Accumulated Depreciation $128,700 5,100 Equipment. 13,700 3,100 247,000 6,300 60,000 Sales Revenue.. 15,000 Accounts Receivable. 2,600 Accumulated Depreciation 2,400 Building 38,000 155,000 Mortgage Payable 20,500 64,000 1,900 .. 33,000 8,400 1,500 (Long-Term) Allowances Prepaid Rent Retained Earnings 2,500 Dividends 1,900 Sales Discounts 58,000 Selling Expenses Inventory Interest Expense