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 2024 Salaries expense Inventory (July 1, 2024) Sales returns Utilition expense Income tax expense $12,400 Sales revenue 1,450 Interest income 1,100 Cost of goods sold 2,950 Rent expense 4,700 Interest expense Inventory (July 31, 2024) 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 163,300 2,000 2 28,050 5,400 400 1,100 Net sales: Total sales revenue BASKIN-ROBBINS Multiple-Step Income Statement For the Month of July 2024 Net sales revenue Operating expenses: Total Operating income Nonoperating items: Total

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 2024.
Salaries expense
Inventory (July 1, 2024)
Sales returns
Utilities expense
Income tax expense
$12,400 Sales revenue
1,650 Interest income
1,100 Cost of goods sold
2,950 Rent expense
4,700 Interest expense
Inventory (July 31, 2024)
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.
963,300
2,000
28,050
5,400
400
1,100
Net sales:
Total sales revenue
BASKIN-ROBBINS
Multiple-Step Income Statement
For the Month of July 2024
Net sales revenue
Operating expenses:
Total
Operating income
Nonoperating items:
Total
Transcribed Image Text: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 2024. Salaries expense Inventory (July 1, 2024) Sales returns Utilities expense Income tax expense $12,400 Sales revenue 1,650 Interest income 1,100 Cost of goods sold 2,950 Rent expense 4,700 Interest expense Inventory (July 31, 2024) 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. 963,300 2,000 28,050 5,400 400 1,100 Net sales: Total sales revenue BASKIN-ROBBINS Multiple-Step Income Statement For the Month of July 2024 Net sales revenue Operating expenses: Total Operating income Nonoperating items: Total
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
3. Calculate the gross profit ratio for the month of July.
Complete this question by entering your answers in the tabs be
Required 1 Required 2a Required 2b
Calculate the inventory turnover ratio for the month of July.
Inventory Turnover Ratio
Numerator/Denominator
Required 3
11
Amounts
< Required 1
0
Required
Transcribed Image Text: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 3. Calculate the gross profit ratio for the month of July. Complete this question by entering your answers in the tabs be Required 1 Required 2a Required 2b Calculate the inventory turnover ratio for the month of July. Inventory Turnover Ratio Numerator/Denominator Required 3 11 Amounts < Required 1 0 Required
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