1. Use the data of Problem 5-14B to prepare Hilton Building Supplies' multi-step income statement for the year ended July 31, 2014.
In problem 5-14B
Selected accounts of Hilton Building Supplies, at July 31, 2014, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and the General Expenses account. Hilton Building Supplies uses the periodic inventory system.

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

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Inventory: July 31, 2013. Inventory: July 31, 2014. Notes Payable, Long-Term. $ 730,000 Accounts Payable.. $102,000 525,000 Accounts Receivable. 117,000 500,000 Accumulated Amortization- 61,500 Purchases. 863,400 Salaries Payable.. Equipment. B. Hilton, Capital. 1,361,000 23,000 B. Hilton, Withdrawals. 42,300 Sales Discounts. 25,000 Cash.. 46,200 Sales Returns and Allowances 52,800 Equipment. General Expenses. Interest Expense . Interest Payable. Interest Revenue. 484,000 1,891,200 Sales Revenue. 284,250 Selling Expenses. Supplies . 317,250 10,200 16,200 8,800 Unearned Sales Revenue.. 34,800 1,500