The following summarized data were provided by the records of Slate inc. for the year ended December 31, 2017:

Required

1. Based on these data, prepare a multiple-step statement of earnings (showing both gross profit and earnings from operations).2. What was the amount of gross profit? Vi'hat was the gross profit percentage? Explain what these two numbers mean.

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Sales of merchandise for cash Sales of merchandise on credit Cost of sales $233,000 40,000 146,000 Selling expenses Administrative expenses Sales returns and allowances Bad debt expense Items not included in the above amounts: 47,200 20,000 8,000 1,200 Average income tax rate, 30% Number of common shares outstanding, 4,500