The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31. Advertising Expense $10,200? Cost of Goods Sold 88,000? Delivery Expense 5,600? Insurance Expense 1,300? Income Tax Expense 6,560? Rent Expense 12,000? Interest Expense 1,000? Sales Revenue 161,700? Sales Discounts 9,600? Sales Returns & Allowances 17,600? Required:a. Prepare a multistep income statement. Mulberry Street SportswearIncome Statement????????????????????????b. Compute the gross profit percentage. Gross Profit?
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a.
| Mulberry Street Sportswear |
| Income Statement |
| For the Year Ended December 31 |
| Net Sales | $134,500? |
| Cost of Goods Sold | 88,000? |
| ? | |
| Gross Profit | 46,500? |
| Selling, General, and Administrative Expenses | 29,100? |
| ? | ? |
| Income from Operations | 17,400? |
| Other Revenue (Expenses); net | (1,000) |
| Income before Income Tax Expense | 16,400? |
| Income Tax Expense | 6,560? |
| ? | ? |
| Net Income | $9,840? |
b.
| Gross Profit | 34.6% |
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