Preparing a multi-step income statement and calculating gross profit percentage [15-25 min...

Preparing a multi-step income statement and calculating gross profit percentage [15-25 min]

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.

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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 your calculations.