Explanation:
1. The preparation of multistep income statement is given below :-
Net sales revenue $279,630
Less: Cost of goods sold $167,000
Gross profit $112,630
Less: Operating expenses
:
Salaries and Wages Expense $41,000
Office Expense $19,200
Profit before tax $52,430
Less: income tax expense -$18,350
Net income $34,080
The computation of net sales revenue is given below:-
= 244,000 + 42,800 - 7,170
= 279,630
2. The Gross profit is computed above that is $112,630
3. The Gross profit percentage is calculated below
= Gross Profit ÷ Net Sales × 100
= $112,630 ÷ $279,630 × 100
= 40.3%
