Preparing Multistep Income Statements and Calculating Gross Profit Percentage Assume that you have been hired by Big Sky Corporation as a summer intern. The company is in the process of preparing its annual financial statements. To help in the process, you are asked to prepare an income statement for internal reporting purposes and an income statement for external reporting purposes. Your boss has also requested that you determine the company€™s gross profit percentage based on the statements that you are to prepare. The following adjusted trial balance was created from the general ledger accounts on December 31.

Your boss wants you to create the spreadsheet in a way that automatically recalculates net sales and any other related amounts whenever changes are made to the contra-revenue accounts. To do this, you know that you€™ll have to use formulas throughout the worksheets and even import or link cells from one worksheet to another. Your friend Owen, an accountant, is willing to help.

Required:
Enter the trial balance information into a spreadsheet and complete the following:
1. Prepare a multistep income statement that would be used for internal reporting purposes. Classify sales returns and allowances and sales discounts as contra-revenue accounts.
2. Prepare a multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.
3. Compute the gross profit percentage (round to one decimal place).

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Account Titles Cash Accounts Receivable nventory Debits 57.000 67.000 103,000 252.000 Credits Accounts Payable Common Stock Retained Earnings Sales Revenue Sales Returns and Allowances Sal $103,000 75000 120,000 145. 900 369,000 ,500 es Discounts Cost of Goods Sold Salaries and Wages Expense 23,000 5,000 Travel Expenses Totals $812 900 . From: Owentheaccountant@yahoo.com To: Cc: Subject: Excel Help Helpme@hotmail.com Sounds like you ane gcing to get some great expiencethis summer. Okay, to import a number from another spreadsheet, you first click on the cell where you want the number to appear. For example, if you want to enter the Net Sales balance in the extemal income statement, click on the cell in the external income statement where the Net Sales number is supposed to appear Enter the equals sign )and then click on the tab that takes you to the worksheet containing the internal income statement. In thatworksheet, click on the cell that contains the amount you want to import into the external income statement and then press enter. This will create a link from the internal income statement cell to the extenal income statement cell. Here's a screen shot showing the formula that will appear after you import the number. id ๑ . Os " ; Bigsky-Microsoft Excel Home Inset Page Layout Formulas Data Reve Vew x G5 f nternal Income StatementG8 Big Sky Corporation Income Statement For the Year Ended Decomber 31 5 Nst sales 6.. Cost of goods sold 7 Gross proft 345 500 248.000 10 12 ㅖ b ni. internal Tncome Statement External Income Statement Ready imal ini 100% 1-1 Don't forget to save the file using a name that indicates who you are