The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31.

Advertising Expense		$10,000
Cost of Goods Sold		87,900
Delivery Expense		4,700
Insurance Expense		900
Income Tax Expense		6,800
Rent Expense		10,000
Interest Expense		1,700
Sales Revenue		160,700
Sales Discounts		10,800
Sales Returns & Allowances		17,700

Required:

1. Prepare a multistep income statement.
2. Compute the gross profit percentage.