Big Billy Corporation is a local grocery store organized seven years ago as a corporation. The store is in an excellent location, and sales have increased each year. The bookkeeper prepared the following statement (assume that amounts are correct, but note the incorrect terminology and format): BIG BILLY CORPORATION Profit and Loss December 31 Debit Credit 413, 000 $ $ 275, 500 9, 300 Sales Cost of Goods Sold Sales Returns and Allowances Sales Discounts Selling Expense Administrative Expense General Expenses Income Tax Expense Net Income 5,300 56, 600 15, 300 1,000 14, 300 35, 700 Totals $ 413, 000 $ 413,000 Required: 1. Prepare a multi-step income statement that would be used for internal reporting purposes. Treat Sales Returns and Allowances as well as Sales Discounts as contra-revenue accounts. BIG BILLY CORPORATION Income Statement For the Year Ended December 31 Sales revenue $ 413,000 Less: Sales discounts Less: Sales return and allowances 413,000 413,000 Operating expenses: Selling expense Administrative expense General expenses Income from operations Income tax expense 56,600 15,300 1,000 72,900 14,300 $ (14,300) 2. Prepare a multi-step income statement that would be used for external reporting purposes, beginning with the amount for Net Sales. BIG BILLY CORPORATION Income Statement For the Year Ended December 31 0 0 $ 0 3. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross profit percentage %