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Problem 6-7A (Algo) Prepare a multiple-step income statement and calculate the inventory turnover ratio and...

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Accounting

Problem 6-7A (Algo) Prepare a multiple-step income statement and calculate the inventory turnover ratio and gross profit ratio (LO6-2,6-7)
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 $12,600 Sales revenue $64,300
Inventory (July 1,2024)1,750 Interest income 2,200
Sales returns 1,000 Cost of goods sold 28,150
Utilities expense 3,050 Rent expense 5,600
Income tax expense 4,900 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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