Emily’s Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format):

Required:

1. Prepare a properly formatted multistep income statement that would be used for external reporting purposes.

2. Compute and interpret the gross profit percentage (using the formula shown in this chapter and rounding to one decimal place).

Transcribed Image Text:

EMILY'S GREENHOUSE CORPORATION Profit and Loss December 31 Debit Credit $485,000 Net Sales $311,000 Cost of Goods Sold Salaries and Wages Expense 61,000 Office Expenses 13,000 Travel Expenses 3,000 Income Tax Expense 18,000 Net Profit 79,000 $485,000 $485,000 Totals