The following data were taken from the records of Lilo Corporation on December 31, 2010: sales in cash 150000 sales credit 800000 sales returns and allowances 10000 selling expenses 80000 cost of goods sold 610000 administrative expense 90000 Items not included in above amounts: Estimated bad debt loss, 1% of credit sales. Average income tax rate, 35%. Number of shares of common stock outstanding, 10,000 Requirements: A. Based on the above data, prepare a multiple-step income statement (including gross margin, pretax income, and earnings per share). B. How much was the gross margin? What was the gross margin ratio? Explain what these two amounts mean