1. Use the data in Problem 5-6A to prepare Marchand Distributors' multi-step income statement for the year ended May 31, 2017.

2. Corry Marchand, owner of the company, strives to earn a gross margin of at least 50 percent and a net income of 20 percent (Net income percentage = Net income ÷ Net sales revenue). Did Marchand Distributors achieve these goals? Show your calculations.

In Problem 5-6A

Items from the accounts of Marchand Distributors at May 31, 2017, follow, listed in alphabetical order. Marchand Distributors uses the perpetual inventory system. For simplicity, the operating expenses are summarized in the General Expenses and the Selling Expenses accounts.

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Accounts Payable Accounts Receivable Accumulated Amortization_ $ 51,000 Interest Payable 07,500 Interest Revenu ..2,800 $ Inventory, May 31, 2017 Equipment 96,900 Notes Payable, Long-Term.. 114,800 7,200 26,500 C. Marchand, Capital 167,800 Salaries Payable.. nts. Cash 19,900 ...1,086,900 Sales Returns and Sold... 45,900 1,991,500 Allowanes Equipment General Expenses Interest Expense 340,800 Sales Revenue 9,200 Supplies 33,100 Unearned Sales Revenue....