The records of Hill Tower Steak Company list the following selected accounts for the quarter ended September 30, 2012:

Requirements
1. Prepare a multi-step income statement.
2. M. Davidson, manager of the company, strives to earn gross profit percentage of at least 50% and net income percentage of 20%. Did Hill Tower achieve these goals? Show yourcalculations.

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400 Accounts payable 45,700 Accounts receivable 42,000 Accumulated depreciation 3,400 Retained carnings, Jun 30 2,200 Dividends 8,400 Cash 296,700 Cost of goods sold 37,500 Equipment 6,000 General expenses 13,200 Common stock $ 16,500 Interest revenue Inventory Note payable, long-term Salary payable 33,900 37,500 38,900 18,500 8,100 Sales discounts Sales returns and allowances Sales revenue 162,400 Selling expense Supplies Unearmed sales revenue 125,000 16,100 14,000 Interest payable 1,200