The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2024. Sales revenue Advertising expense Rent expense $ 70,800 Inventory (March 31, 2024) 5,100 Insurance expense $1,000 1,650 Gain on sale of building 3,000 Sales discounts 6,200 Salaries expense 2,350 8,100 Inventory (March 1, 2024) Cost of goods sold 2,150 Income tax expense 35,150 2,900 Required: 1. Prepare a multiple-step income statement for the month ended March 31, 2024. 2-a. Calculate the inventory turnover ratio for the month of March. 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 March. Complete this question by entering your answers in the tabs below. Required 1 Required 2a Required 2b Required 3

The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2024. Sales revenue Advertising expense Rent expense $ 70,800 Inventory (March 31, 2024) 5,100 Insurance expense $1,000 1,650 Gain on sale of building 3,000 Sales discounts 6,200 Salaries expense 2,350 8,100 Inventory (March 1, 2024) Cost of goods sold 2,150 Income tax expense 35,150 2,900 Required: 1. Prepare a multiple-step income statement for the month ended March 31, 2024. 2-a. Calculate the inventory turnover ratio for the month of March. 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 March. Complete this question by entering your answers in the tabs below. Required 1 Required 2a Required 2b Required 3

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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