Items from the accounts of Applewood Distributors at May 31, 2017, follow, listed in alphabetical order. Applewood Distributors uses the perpetual inventory system. For simplicity, the operating expenses are summarized in the General Expenses and Selling Expenses accounts. (Click the icon to view the accounts.) Required 1. Prepare Applewood Distributors' multi-step income statement for the year ended May 31, 2017 2. Corry Applewood, 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 Applewood Distributors achieve these goals? Show your calculations. Requirement 1. Prepare Applewood Distributors' multi-step income statement for the year ended May 31, 2017. Begin with the heading, and then complete the body of the statement, one section at a time, as presented. More Info Applewood Distributors Income Statement For the Year Ended May 31, 2017 Revenue Less Accounts Payable ...... S Accounts Receivable ......... Accumulated Amortization -Equipment C. Applewood, Capital ........ C. Applewood, Withdrawals. ... Cash Cost of Goods Sold .......... Equipment ................ General Expenses Interest Expense 71,000 Interest Payable. $ 4,200 121,000 || Interest Revenue 680 Inventory: May 31, 2017 169,000 112,000 Note Payable, Long-Term ..... 124,000 175,000 Salaries Payable ............. 8,400 68,000|| Sales Discounts. 32,000 21,000 Sales Returns and 1,120,000 Allowances 45,900 314.080 Sales Revenue .............. 1,991,500 208,000 Selling Expenses 357,200 10,600 Supplies 45,000 Unearned Sales Revenue ...... 25,000 Net sales revenue Operating expenses: Operating income (loss) Other revenue and expense: Print Done Net income (loss) Requirement 2. Corry Applewood, 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 Applewood Distributors achieve these goals? Show your calculations. Windows Windows Choose from any list or enter any number in the input fields and then continue to the next question. x Items from the accounts of Applewood Distributors at May 31, 2017, follow, listed in alphabetic (Click the icon to view the accounts.) More Info summarized in the General Expenses and Selling Expenses accounts. Required 1. Prepare Applewood Distributors' multi-step income statement for the year ended May 2. Corry Applewood, owner of the company, strives to earn a gross margin of at least 50 wood Distributors achieve these goals? Show your calculations. Less: Net sales revenue Accounts Payable 71,000 Interest Payable. S 4,200 Accounts Receivable 121,000|| Interest Revenue 680 Accumulated Amortization Inventory: May 31, 2017 169,000 -Equipment 112,000 Note Payable, Long-Term ..... 124,000 C. Applewood, Capital ........ 175,000 Salaries Payable ............. 8,400 C. Applewood, Withdrawals.... 68,000|| Sales Discounts. 32,000 Cash 21,000 Sales Returns and Cost of Goods Sold ..... 1,120,000 Allowances 45,900 Equipment .................. 314,080 Sales Revenue ............... 1,991,500 General Expenses 208,000 Selling Expenses 357,200 Interest Expense 10,600 Supplies ..................... 45,000 Unearned Sales Revenue 25,000 Operating expenses: Operating income (loss) Other revenue and expense: Print Done Net income (loss) Requirement 2. Corry Applewood, 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 Applewood Distributors achieve these goals? Show your calculations. Start by calculating the gross margin percentage. Use the following formula to complete the calculation. (Round your answer to one decimal place. Use a minus sign or parentheses to indicate a negative answer.) Gross margin percentage Now calculate the net income percentage. Use the following formula to complete the calculation. (Round your answer to one decimal place. Use a minus sign or parentheses to indicate a negative answer.) Net income percentage Applewood Distributors achieve either of its goals. Windows Windows Choose from any list or enter any number in the input fields and then continue to the next