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Question 3 An alphabetical list of Sandl'lills Company's adjusted accounts at its scal year end, August 31, 201?, follows. All aocounis have normal balances. Accounts payable $15,550 Notes payable $42,000 Accumulated depreciation-equipment 14,000 Prepaid insurance 575 Accumulated depreciationfurniture 1?,500 R. Smistad, capital 65,250 Cash 18.490 R. 5mistad, drawings 80,000 Cost of goods sold 271,600 Rent expense 24,900 Depreciation expense 7,080 Salaries expense 50,300 Equipment 35,000 Salaries payable 2,250 Furniture 42.900 Sales 472,000 Insurance expense 3,575 Sales returns and allowances 16,300 Interest expense 2, 170 Supplies 950 Interest payable 565 Supplies expense 6,325 Mercl'landise inventory 71.350 unearned revenue 2,600 Additional information: 1. 0f the notes payable, $6,100 becomes due on February 17, 2018. The balance is due in 2019. 2. On July 18, 2017,. R. Smistad invested $3,800 cash in the business. Prepare a multiple-step income statement. (Enter negative amounts using either a negative Sign preceding the number e.g. 45 or parentheses e.g. (45).} Prepare a classified balance sheet. ( List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Equipment and Furniture.) SANDHILL COMPANY Balance Sheet Assets 4 4Liabilities and Owner's Equity Calculate the gross profit margin and profit margin. (Round answers to 1 decimal place, e.g. 52.7%.) Gross profit margin % Profit margin