Please answer with detail

1.

Prepare a properly formatted multistep income statement that would be used for internal reporting purposes. Treat Sales Returns and Allowances and Sales Discounts as contra-revenue accounts.

2.	Prepare a properly formatted multistep income statement that would be used for external reporting purposes, beginning with the amount for Net Sales.

3.	Compute the gross profit percentage.

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 book keeper prepared the following statement (assume that all amounts are correct, but note the incorrect terminology and format): BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit 340,000 Sales Cost of Goods Sold Sales Returns and Allowanc Sales Discounts Salaries and Wages Expense Office Expense Travel Expenses Income Tax Expense Net Profit $239,000 6,500 5,000 48,000 8,500 1,000 9,600 22,400 es Totals $340,000 $340,000