askin-Robbins is one of the world’s 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 2021. Salaries expense $ 13,000 Sales revenue $ 66,300 Inventory (July 1, 2021) 1,950 Interest income 2,600 Sales returns 1,200 Cost of goods sold 28,350 Utilities expense 3,250 Rent expense 6,000 Income tax expense 5,300 Interest expense 500 Inventory (July 31, 2021) 1,200 Problem 6-7A Part 3 3. Calculate the gross profit ratio for the month of July.
askin-Robbins is one of the world’s 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 2021. Salaries expense $ 13,000 Sales revenue $ 66,300 Inventory (July 1, 2021) 1,950 Interest income 2,600 Sales returns 1,200 Cost of goods sold 28,350 Utilities expense 3,250 Rent expense 6,000 Income tax expense 5,300 Interest expense 500 Inventory (July 31, 2021) 1,200 Problem 6-7A Part 3 3. Calculate the gross profit ratio for the month of July.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 6-7A Prepare a multiple-step income statement and calculate the inventory turnover ratio and gross profit ratio (LO6-2, 6-7)
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Baskin-Robbins is one of the world’s 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 2021.
| Salaries expense | $ | 13,000 | Sales revenue | $ | 66,300 | |||
| Inventory (July 1, 2021) | 1,950 | Interest income | 2,600 | |||||
| Sales returns | 1,200 | Cost of goods sold | 28,350 | |||||
| Utilities expense | 3,250 | Rent expense | 6,000 | |||||
| Income tax expense | 5,300 | Interest expense | 500 | |||||
| Inventory (July 31, 2021) | 1,200 | |||||||
Problem 6-7A Part 3
3. Calculate the gross profit ratio for the month of July.
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