[The following information applies to the questions displayed below.] Please see pic 1

1. Prepare a properly formatted multistep income statement that would be used for internal reporting purposes. Treat Sales Returns and Allowances and Sales Discounts as contra-revenue accounts. Please see pic 2 below

2. Prepare a properly formatted multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales 3. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Thank you very much!

Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The book keeper prepared the following statement (assume that all amounts are correct, but note the Incorrect terminology and forma) BIG TOMMY CORPORATION Profit and Loss December 31 Credit Debit Sales $260,000 199,000 Cost of Goods Sold Sales Returns and Allowances 3,000 4,000 Sales Discounts Salaries and wages Expense 38,000 1,000 Office Expense 1,000 Travel Expenses 4,200 Income Tax Expense 9,800 Net Profit $260,000 $260,000 Totals