1. Based on these data, prepare a multi-step income statement for internal reporting purposes. 2-a....
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Accounting
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?
2-c. Which of the following(s) is true? (Select all that apply.)
3. Did the gross profit percentage in the current year improve, or decline, relative to the 42 percent gross profit percentage in the prior year?
PLEASE ANSWER ALL THE QUESTIONS
The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31: Administrative Expense Cost of Goods Sold Income Tax Expense Sales Returns and Allowances Selling Expense Sales of merchandise for cash Sales of merchandise on credit 20,000 170,000 18,600 7,500 42,200 265,000 44,500 The gross profit percentage is the average amount of gross profit earned on each dollar of net purchase. The gross profit is cost of goods sold minus net sales revenue. The gross profit is net sales revenue minus cost of goods sold. The gross profit percentage is the average amount of gross profit earned on each dollar of net sales
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1. Based on these data, prepare a multi-step income statement for internal reporting purposes.
3. Did the gross profit percentage in the current year improve, or decline, relative to the 42 percent gross profit percentage in the prior year?