Chapter 5, Problem P5.45BPGB

To determine

Single step income statement - In a single step income statement, all the revenues will be sub totaled in one side and the expenses will be sub totaled on the other side and at the bottom of the income statement you will find the net loss or net gain.

Multistep income statement - In multistep income statement in order to arrive to the net income, a lot of subtractions and sub total is done. This statement is easier for readers to segregate the information they need from this report. Expenses, Gross profit percentage and other incomes are some of the subtotals.

Gross profit margin - Gross profit margin is a ratio between the difference of sales revenue and the cost of goods sold by the sales revenue.

1. Single step income statement,

2. Multistep income statement and

3. Gross profit percentage of Grade A Beef Company for the quarter ended September 30, 2018

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