Reading Readiness, Inc. has provided you its list of accounts and balances as of January 31. The Controller has asked you to prepare an Income Statement for the month ended January 31. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.

1 Noodles Unlimited, Inc. sells swimming poolltoys. The following adjusted trial t 2 is for the year ended December 31, 20X1. Credits 5 Debits $37,500 28,600 43,300 2,000 69,000 9 Account Titles Cash Accounts Receivable 7 Inventory 8 Prepaid Rent Equipment 10 Accumulated Depreciation 11 | Accounts Payable 12 Notes Payable 13 Common Stock 14 Retained Earnings, January 1, 20X1 15 Sales Revenue Sales Returns and Allowances 17 Sales Discounts 18 Cost of Goods Sold 19 Salaries and Wages Expense 20 Depreciation Expense 21 Rent Expense 22 Interest Expense 23 | Income Tax Expense 24 Totals $20,700 8,800 20,000 75,000 31,800 175,500 4,700 6,000 67,700 25,900 13,800 24,000 1,600 7,700 $331,800 $331,800 26 Required: 27 1. Prepare a multistep income statement that would be used for internal reporting purposes. 28 Note: When more than one correct account could appear in a cell, list items in order of largest to 29 smallest dollar amounts. Use cell referencing to select account titles and values. 30 All numbers should appear as positive numbers. 31 2. After entering the formula in cell B52, use the Excel IF function to label cell A52 as either 32 "Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52. 33 NOODLES UNLIMITED, INC. Income Statement 36 For the Year Ended December 31, 20X1 38 Less: 39 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 47 48 Income from Operations 49 50 Income before Income Tax Expense 54 3. Compute the gross profit percentage. 55 Note: Make sure to include *100 at the end of your formula 56 in order to convert the decimal to a percentage. 57 Gross Profit Percentage percent