The adjusted trial balance for Great Gadget, Inc., as of April 30, 2012, is presented next:

Requirements
1. Prepare the multi-step income statement for April for Great Gadget, Inc.
2. Calculate the gross profit percentage for April for Great Gadget, Inc.
3. What does Great Gadget, Inc.€™s gross profit percentagemean?

Transcribed Image Text:

Great Gadget, Inc. Trial Balance April 30, 2012 ACCOUNT DEBIT CREDIT $ 10,100 31,900 20.100 2,400 75,000 Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Unearned Sales Revenue Note Payable, Long-Term Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Selling Expense General Expense Interest Expense Total S 6,100 6,300 2,400 15,000 40,000 43,700 41,000 221,600 3,500 3.100 98,900 32,600 16,100 400 $335,100 $335,100