Required information

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The following data were provided by Mystery Incorporated for the year ended December 31:

Cost of Goods Sold	$	162,000
Income Tax Expense		16,880
Merchandise Sales (gross revenue) for Cash		234,000
Merchandise Sales (gross revenue) on Credit		40,800
Office Expenses		18,700
Sales Returns and Allowances		6,870
Salaries and Wages Expense		39,000

Required:

1. Prepare a multistep income statement.

2-a. What was the amount of gross profit?

2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.)

2-c. Did the gross profit percentage in the current year improve, or decline, relative to the 37% gross profit percentage in the prior year?