Baskin-Robbins is one of the worlds largest specialty ice cream shops. The company offers dozens...
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Accounting
Baskin-Robbins is one of the worlds largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2024.
Salaries expense
$12,000
Sales revenue
$61,300
Inventory (July 1, 2024)
1,450
Interest income
1,600
Sales returns
1,000
Cost of goods sold
27,850
Utilities expense
2,750
Rent expense
5,000
Income tax expense
4,300
Interest expense
300
Inventory (July 31, 2024)
1,000
Required:
1. Prepare a multiple-step income statement for the month ended July 31, 2024. 2-a. Calculate the inventory turnover ratio for the month of July. 2-b. Would you expect this ratio to be higher or lower in December 2024? 3. Calculate the gross profit ratio for the month of July.
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