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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. $12,800 Salaries expense Inventory (July 1, 2024) Sales returns Utilities expense Income tax expense 1,850 1,100 3,150 5,100 Sales revenue Interest income Cost of goods sold Rent expense Interest expense Inventory (July 31, 2024) $65,300 2,400 28,250 5,800 400 1,100 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.

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. $12,800 Salaries expense Inventory (July 1, 2024) Sales returns Utilities expense Income tax expense 1,850 1,100 3,150 5,100 Sales revenue Interest income Cost of goods sold Rent expense Interest expense Inventory (July 31, 2024) $65,300 2,400 28,250 5,800 400 1,100 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $12,800 Sales revenue Inventory (July 1, 2024) Sales returns Utilities expense Income tax expense 1,850 1,100 3,150 5,100 Interest income Cost of goods sold Rent expense Interest expense Inventory (July 31, 2024) $65,300 2,400 28,250 5,800 400 1,100 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.
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 $12,800 Sales revenue Inventory (July 1, 2024) Sales returns Utilities expense Income tax expense 1,850 1,100 3,150 5,100 Interest income Cost of goods sold Rent expense Interest expense Inventory (July 31, 2024) $65,300 2,400 28,250 5,800 400 1,100 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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