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Psymon Company, Inc., sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31:

Account Titles	Debits				Credits
Cash	$	55,690
Accounts Receivable		23,200
Inventory		84,500
Property and Equipment		63,000
Accumulated Depreciation					$	26,500
Accounts Payable						39,100
Common Stock						116,000
Retained Earnings, January 1						14,200
Sales Revenue						221,600
Cost of Goods Sold		129,200
Salaries and Wages Expense		22,200
Office Expenses		23,200
Interest Expense		3,300
Income Tax Expense		13,110
Totals	$	417,400			$	417,400

1. Prepare a multistep income statement that would be used for external reporting purposes. TIP: Some of the accounts listed will appear on the balance sheet rather than the income statement.

2. Compute the gross profit percentage