Toys “R” Us 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 2021. Sales revenue$74,800 Inventory (Mar. 31, 2021)$1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 2-a. Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio = =

Average inventory = (Beginning inventory + Ending inventory)/2 = (2,550 + 1,200)/2…

Answered: Toys “R” Us sells a variety of…

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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Toys “R” Us 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 2021.


Sales revenue	$	74,800	Inventory (Mar. 31, 2021)	$	1,200
Advertising expense		5,900	Insurance expense		2,050
Rent expense		3,800	Sales discounts		2,750
Gain on sale of building		7,000	Salaries expense		8,900
Inventory (Mar. 1, 2021)		2,550	Income tax expense		3,700
Cost of goods sold		35,550