E6-17 Analyzing Gross Profit Percentage on the Basis of a Multistep Income Statement LO 6-6...
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E6-17 Analyzing Gross Profit Percentage on the Basis of a Multistep Income Statement LO 6-6 The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expenses Sales Returns and Allowances Salaries and Wages Expense $165,000 17.600 240,000 42,000 19,000 7,000 40,200 Required: 1. Based on these data, prepare a multistep income statement for external reporting purposes (showing appropriate subtotals and totals). 2. What was the amount of gross profit? What was the gross profit percentage (calculated using the formula shown in this chapter and rounded to one decimal place)? Explain what these two amounts mean. 3. Did the gross profit percentage in the current year improve, or decline, relative to the 38.0% gross profit percentage in the prior year
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