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The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume the month of March 2024. Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (March 1, 2024) Cost of goods sold 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 $ 71,300 Inventory (March 31, 2024) 5,200 Insurance expense 3,100 Sales discounts 6,300 Salaries expense 2,200 Income tax expense 35,200 Required 2a Required 2b Required 3 Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio

The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume the month of March 2024. Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (March 1, 2024) Cost of goods sold 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 $ 71,300 Inventory (March 31, 2024) 5,200 Insurance expense 3,100 Sales discounts 6,300 Salaries expense 2,200 Income tax expense 35,200 Required 2a Required 2b Required 3 Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio

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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The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume the month of March 2024. Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (March 1, 2024) Cost of goods sold 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. Required 1 Required 2a Required 2b 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. $71,300 Inventory (March 31, 2024) Insurance expense Numerator/Denominator 5,200 3,100 Sales discounts 6,300 Salaries expense 2,200 Income tax expense 35,200 LUSUMA Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio Required 3 Amounts Numerator/Denominator 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 Gross Profit Ratio 0 Calculate the gross profit ratio for the month of March. Amounts 0
Transcribed Image Text:The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume the month of March 2024. Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (March 1, 2024) Cost of goods sold 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. Required 1 Required 2a Required 2b 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. $71,300 Inventory (March 31, 2024) Insurance expense Numerator/Denominator 5,200 3,100 Sales discounts 6,300 Salaries expense 2,200 Income tax expense 35,200 LUSUMA Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio Required 3 Amounts Numerator/Denominator 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 Gross Profit Ratio 0 Calculate the gross profit ratio for the month of March. Amounts 0
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 Gain on sale of building Inventory (March 1, 2024) Cost of goods sold 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. Required 1 Required 2a 2-b. Would you expect this ratio to be higher or lower in December 20247 3. Calculate the gross profit ratio for the month of March. Complete this question by entering your answers in the tabs below. Net sales: Total sales revenue $71,300 Inventory (March 31, 2024) Insurance expense Sales discounts 6,300 Salaries expense 2,200 Income tax expense 35,200 Net sales revenue 5,200 3,100 THE FUN ZONE Multiple-Step Income Statement For the Month of March, 2024 Operating expenses: Total Operating income Nonoperating items: Required 2b Required 3 $ 1,100 1,700 2,400 8,200 3,000 0
Transcribed Image Text: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 Gain on sale of building Inventory (March 1, 2024) Cost of goods sold 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. Required 1 Required 2a 2-b. Would you expect this ratio to be higher or lower in December 20247 3. Calculate the gross profit ratio for the month of March. Complete this question by entering your answers in the tabs below. Net sales: Total sales revenue $71,300 Inventory (March 31, 2024) Insurance expense Sales discounts 6,300 Salaries expense 2,200 Income tax expense 35,200 Net sales revenue 5,200 3,100 THE FUN ZONE Multiple-Step Income Statement For the Month of March, 2024 Operating expenses: Total Operating income Nonoperating items: Required 2b Required 3 $ 1,100 1,700 2,400 8,200 3,000 0
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