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E6-21 Analyzing Gross Profit Percentage on the Basis of a Multi-step Income Statement [LO5) The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31: Administrative Expense Cost of Goods Sold Incone Tax Expense Sales Returns and Allowances Selling Expense Sales of merchandise for cash Sales of merchandise on credit 19,800 165,000 17,600 7,000 40,200 240, eee 42,00 Required: 1. Based on these data, prepare a multi-step income statement for internal reporting purposes. MYSTERY INCORPORATED Income Statement For the Year Ended December 31 Operating expenses 022hew 2-a. What was the amount of gross profit? Gross profit 2-b. What was the gross profit percentage? Gross profit percentage % ho 2-c. Which of the following(s) is true? (Select all that apply.) PDL The gross proft 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. 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? There is in the gross profit percentage when compared to 38.0% in the previous year

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