You have been provided with the following account balances for Webber Ltd. for the years ended November 30, 2020, and 2021:

Required

a. Prepare a multi-step, comparative statement of income for Webber for 2020 and 2021.

b. Determine Webber’s gross margin percentage for each year. In which year was Webber more successful in this area?

c. Did the year with the superior gross margin percentage also have the largest net income? Explain why this may or may not be the case.

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2020 2021 $ 310,000 $ 320,000 Advertising expense 1,764,000 1,456,000 Cost of goods sold General and administrative expenses 112,000 105,000 Income tax expense 82,000 102,000 5,200 Interest revenue 6,100 36,000 Rent expense 27,000 2,800,000 Sales revenue 3,150,000 Utilities expense 88,000 76,000 Wages expense 504,000 492,000