E. FINANCIAL STATEMENTS (15 Marks) Presented below is the adjusted trial balance of Karen's Pet Supplies as at its riscal year end, June 02All accounts are their normal balance (debit or credit). Karen's uses the perpetual inventory System $ 50,770 24,000 14,000 55,000 47,000 $ 34,850 27,300 1,500 32,000 9,500 4,500 195,000 Accounts payable...- Accounts receivable... Accum. depreciation, computers. Accum. depreciation, equipment Cash.. Computers....... Cost of goods sold Depreciation expense. Equipment.... .. ..... Insurance expense Interest expense.... Interest payable...... Interest revenue 1,500 K. Milani, capital... K. Milani, drawings. Long-term note receivable..... Merchandise inventory.... . Note payable, due 2022 .......... Prepaid rent.. ..... Rent expense.... . . Salaries expense Salaries payable... Sales discounts Sales returns and allowances... 14,000 50,000 6,200 4,000 100 80,000 8,400 2,350 280 ens 1,000 320,000 900 1,750 Sales revenue Supplies. Supplies expense. 200 ogy B Instructions tutors a) b) Prepare a multiple-step income statement (12 marks) Calculate Karen's gross profit margin. Karen's gross profit margin for 2020 was 45%. Comment on the change in gross profit margin from the prior year. (3 marks) email