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 all amounts are correct, but note the incorrect terminology and format): BIG BILLY CORPORATION Profit and Loss December 31 Debit Credit $425,000 Sales Cost of Goods Sold Sales Returns and Allowances Sales Discounts Selling Expense Administrative Expense General Expenses Income Tax Expense Net Income $281, 500 10,500 6,500 59,000 16,500 1,000 15, 500 34,500 Totals $425,000 $425,000 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 Operating expenses: 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 3. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross profit percentage %