Problem A Algo Prepare a multiplestep income statement and calculate the inventory turnover ratio and gross profit ratio LO
BaskinRobbins is one of the worlds 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 BaskinRobbins in Raleigh, North Carolina, has the following amounts for the month of July
Salaries expense $ Sales revenue $
Inventory July Interest income
Sales returns Cost of goods sold
Utilities expense Rent expense
Income tax expense Interest expense
Inventory July
Required:
Prepare a multiplestep income statement for the month ended July
a Calculate the inventory turnover ratio for the month of July.
b Would you expect this ratio to be higher or lower in December
Calculate the gross profit ratio for the month of July.
