A. Prepare a properly formatted multistep income statement that would be used for external reporting purposes.

B. Compute the gross profit percentage.

Required information [The following information applies to the questions displayed below.] Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): BIG TOMMY CORPORATION Profit and Loss December 31 Credit $389,900 Debit Net Sales Cost of Goods Sold Salaries and Wages Expense Office Expenses Travel Expenses Income Tax Expense Net Profit Totals $271,000 56,000 14,500 1,000 14,220 33,180 $389,900 $389,900