Prepare a multistep income statement to show the

Reference no: EM13587085

The accounting records of Speed Up Auto Parts on August 31, 2008, list the following amounts:

Cost of Goods Sold104,000
Sales Discounts4,600
Equipment65,200
Salary Payable2,200
Accounts Payable19,500
Cam Engine, Withdrawals31,600
Sales Returns & Allowances14,300
Selling Expenses21,400
Cash15,700
Inventory, Aug. 31, 200740,000
Inventory, Aug. 31, 200843,200
Sales Revenue206,500
Notes Payable6,100
Accumulated Depreciation, Equipment17,700
Cam Engine, Capital66,000
General & Administrative Expenses15,100
Accounts Receivables6,900

Requirements:

1. Prepare a multistep income statement to show the computation of Speed Up Auto Parts net sales revenue, gross profit, and net income for the year ended Aug. 31, 2008.

2. Cam Engine, owner of the business, strives to earn gross profit of $85,000 and net income of $45,000. Did Cam achieve these goals? Explain.

3. Compute the company's gross profit percentage and rate of inventory turnover for 2008.

Reference no: EM13587085

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