The adjusted trial balance ("ATB Tab") is prepared at fiscal year-end for Gang Green Products Company. The Company categorizes the following accounts as selling expenses: Depreciation Expense - Store Equipment, Sales Salaries Expense, Rent Expense - Selling Space, Store Supplies Expense and Advertising Expense. It categorizes any remaining expenses as general & administrative. 1. Prepare a multiple-step income statement for the year-ended October 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses ("IS Tab"). 2. Compute the current ratio, acid-test ratio and gross margin ratio as of October 1 (round ratios to two decimals)("Ratio Tab").

Gang Green Products Company Adjusted Trial Balance October 31
	Debit	Credit
Cash	7,400
Merchandising inventory	21,300
Store supplies	3,700
Prepaid insurance	3,800
Store equipment	81,800
Accumulated depreciation - store equipment		35,000
Accounts payable		18,000
L. Bell, capital		43,000
L. Bell, withdrawals	2,000
Sales		227,100
Sales discounts	1,000
Sales returns and allowances	5,000
Cost of goods sold	78,500
Depreciation expense - store equipment	3,000
Sales salaries expense	31,500
Office salaries expense	31,500
Insurance expense	2,800
Rent expense - selling space	13,000
Rent Expense - office space	13,000
Store supplies expense	6,000
Advertising expense	17,800
Totals	323,100	323,100