The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31:

Administrative Expense	$	19,000
Cost of Goods Sold		165,000
Income Tax Expense		17,600
Sales Returns and Allowances		7,000
Selling Expense		40,200
Sales of merchandise for cash		240,000
Sales of merchandise on credit		42,000

Required: 1. Based on these data, prepare a multi-step income statement for internal reporting purposes.

2-a. What was the amount of gross profit?

2-b. What was the gross profit percentage?

3. Did the gross profit percentage in the current year improve, or decline, relative to the 38.0 percent gross profit percentage in the prior year?