Required: 1. Prepare a multistep income statement for external reporting purposes. MYSTERY INCORPORATED Income Statement For the Year Ended December 31 Net Sales Cost of Goods Sold 172,000 (172,000) Gross Profit $ Office Expense Salaries and Wages Expense 19,700 43,000 Total Operating Expenses Income from Operations 62,700 (234,700) Income Tax Expense Net Income $ (234,700) ! Required information E6-17 (Algo) Analyzing Gross Profit Percentage on the Basis of a Multistep Income Statement [LO 6-6) [The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense $ 172,000 19,820 254,000 44,800 19,700 7,470 43,000