Question 5

Part A:

Part B:

Required Information [The following information applies to the questions displayed below.] Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format: BIG TORTY CORPORATION Profit and Loss December 31 Debit Credit $375,00 Net Sales Cost of Goods Sold Salaries and ages Expense Office Expenses Travel Expenses Tricote Tax Expense Net Profit Totals 5263,000 54,00 13.000 1.000 13,440 31,360 $375,00 5375,00 Required: 1. Prepare a properly formatted multistep income statement that would be used for external reporting purposes. DIO TOMMY CORPORATION Income Statement Required information [The following information applies to the questions displayed below.) Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit $375,00 Net Sales Cost of Goods Sold Salaries and wages Expense Office Expenses Travel Expenses Income Tax Expense Net Profit $263,00 54,000 13,000 2.000 13440 31,360 $325,00 Totals $325,800 2. Compute the gross profit percentage (Round your answer to 1 decimal place.) Gross Profit Percentage %