Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The book-keeper prepared the following statement (assume that all amounts are correct, but note the incorrect terminology and format):

BIG TOMMY CORPORATION Profit and Loss December 31

Debit

Credit

Sales

$

610,000

Cost of Goods Sold

$

351,000

Sales Returns and Allowances

17,200

Sales Discounts

10,500

Salaries and Wages Expense

76,000

Office Expense

29,500

Travel Expenses

1,000

Income Tax Expense

37,440

Net Profit

87,360

Totals

$

610,000

$

610,000

1.	Prepare a properly formatted multistep income statement that would be used for internal reporting purposes. Treat Sales Returns and Allowances and Sales Discounts as contra-revenue accounts.

Prepare a properly formatted multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.

Compute the gross profit percentage. (Round your answer to 1 decimal place.)