The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31:
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| Administrative Expense | $ | 19,600 |
| Cost of Goods Sold | | 168,000 |
| Income Tax Expense | | 18,200 |
| Sales Returns and Allowances | | 7,300 |
| Selling Expense | | 41,400 |
| Sales of merchandise for cash | | 255,000 |
| Sales of merchandise on credit | | 43,500 |
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Required: 1. Based on these data, prepare a multi-step income statement for internal reporting purposes.
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| | | MYSTERY INCORPORATED | | Income Statement | | For the Year Ended December 31 | | | | | | | | | | | | 0 | | | | | | | | 0 | | Operating expenses: | | | | | | | | | | | | | | $0 | | | | | | | | | | | | $0 | |
2-a. What was the amount of gross profit?
2-b. What was the gross profit percentage?
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| | | Gross profit percentage | | % | |
2-c. Which of the following(s) is true? (Select all that apply.)
| The gross profit percentage is the average amount of gross profit earned on each dollar of net purchase.checkbox unchecked1 of 4 |
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| The gross profit is cost of goods sold minus net sales revenue.checkbox unchecked2 of 4 |
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| The gross profit is net sales revenue minus cost of goods sold.checkbox unchecked3 of 4 |
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| The gross profit percentage is the average amount of gross profit earned on each dollar of net sales.checkbox unchecked4 of 4 | |
3. Did the gross profit percentage in the current year improve, or decline, relative to the 40 percent gross profit percentage in the prior
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| | | There is | | in the gross profit percentage when compared to 40% in the previous year. | |
