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		87,500
Delivery Expense		4,600
Insurance Expense		900
Income Tax Expense		6,640
Rent Expense		11,400
Interest Expense		1,600
Sales Revenue		161,400
Sales Discounts		10,300
Sales Returns & Allowances		18,500

Required:

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