Emilys Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement (assume that all amounts are correct, but note the incorrect terminology and format):

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.

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

PB6-4 Preparing a Multistep Income Statement with Sales Discounts and Sales Returns and Allowances and Computing the Gross Profit Percentage [LO 6-5) The following information applies to the questions displayed below. Emily's Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement (assume that all amounts are correct, but note the incorrec: erminology and format: EMILY'S GREENHOUSE CORPORATION Profit and Loss December 31 Credit S564,000 Debit Sales Cost of Goods Sold Sales Returns and Allowances Sales Discounts Salaries and Wages Expense Office Expense Travel Expenses Income Tax Expense Net Proft S329,000 12,800 10,400 73,000 17,500 4,500 35,040 81,760 Totals S564,000 S564,000