1. Use the data in Problem 5-14A to prepare Marchand Distributors’ multi-step income statement for the year ended May 31, 2017.
2. Corry Marchand, owner of the company, strives to earn a gross margin of at least 50 percent and a net income of 20 percent (Net income percentage = Net income ÷ Net sales revenue). Did Marchand Distributors achieve these goals? Show your calculations.
In Problem 5-14A
Items from the accounts of Marchand Distributors at May 31, 2017, follow, listed in alphabetical order. Marchand Distributors uses the periodic inventory system. For simplicity, all operating expenses are summarized in the General Expenses and the Selling Expenses account.
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