The following summarized data were provided by the records ofMystery Incorporated for the year ended December 31:
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| Administrative Expense | $ | 22,200 |
| Cost of Goods Sold | | 181,000 |
| Income Tax Expense | | 20,800 |
| Sales Returns and Allowances | | 8,600 |
| Selling Expense | | 46,600 |
| Sales of merchandise for cash | | 320,000 |
| Sales of merchandise on credit | | 50,000 |
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1. Based on these data, prepare a multi-stepincome statement for internal reporting purposes
.2-a. What was the amount of grossprofit?
2-c. Which of the following(s) istrue? (Select all that apply.)
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| | The gross profit percentage is theaverage amount of gross profit earned on each dollar of netpurchase.checkbox unchecked1 of 4 | | The gross profit is cost of goods soldminus net sales revenue.checkbox unchecked2 of 4 | | The gross profit is net sales revenueminus cost of goods sold.checkbox unchecked3 of 4 | | The gross profit percentageis the average amount of gross profit earned on each dollar of netsales.checkbox unchecked4 of 4 |
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3. Did the gross profit percentage in thecurrent year improve, or decline, relative to the 48 percent grossprofit percentage in the prior year?
There is _______ in the gross profit percentage when compared to48% in the previous year.
