12 ! Part 1 of 2 2.5 points eBook Required information [The following information applies to the questions displayed below.] Big Tommy Corporation is a local grocery store organized seven 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): Net Sales Cost of Goods Sold BIG TOMMY CORPORATION Profit and Loss Salaries and Wages Expense Office Expense Travel Expenses Income Tax Expense Print Net Profit Totals References December 31 Debit Credit $497,500 $319,000 68,000 23,500 1,000 25,800 60,200 $497,500 $497,500 Required: 1. Prepare a properly formatted multistep income statement that would be used for external reporting purposes. BIG TOMMY CORPORATION Income Statement For the Year Ended December 31 Net Sales Cost of Goods Sold Gross Profit $ 497,500 319,000 178,500 Expenses Salaries and Wages Expense 68,000 Office Expense 23,500 Travel Expense 1,000 Office Expense 92,500 Income from Operations Income Tax Expense 25,800 Net Income $ 60,200