56-5 Evaluating the Results of Merchandising Operations LO 6-6 Page Merchandise Mavens Corporation sells goods throughout North America. One of its product lines has recently reported the following information to you at head office. Based on this information, you have become concerned that the company is experiencing difficulties selling the product. 2018 2017 2016 $375,000 $358,000 $334.000 400,000 400,000 400,000 Cost of Goods Sold Gross Sales Revenue Inventory Sales Returns and Allowances 56,410 34.000 29,425 10,000 2.000 3,000 Required: 1. Prepare a multistep income statement for external reporting purposes, stopping at the gross profit subtotal. Use a separate column to report each year's results, similar to Exhibit 6.8 Compute gross profit percentage for each year. 2. Analyze the information to identify two observations that lead to your concern