The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31:
Required:
1. Based on these data, prepare a multi step income statement for internal reporting purposes (showing all appropriate subtotals and totals).
2. What was the amount of gross profit? What was the gross profit percentage (calculated using the formula shown in this chapter and rounded to one decimal place)? Explain what these two amounts mean.
3. Did the gross profit percentage in the current year improve, or decline, relative to the 38.0% gross profit percentage in the prior year?