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Selected amounts from the accounting records of Paper Stores for the year ended December 31, 2020, follow. (Click the icon to view the accounting records.) Required 1. Paper Stores uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020 Requirement 1. Paper Stores uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020 Begin with the heading, and then complete the body of the statement, one section at a time, as presented 1. Paper Stores uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020 2. Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2019, was $39,000 and on December 31, 2020, was $40,000. Last year the turnover rate was 4.29 times. Does this two-year trend suggest improvement or deterioration in inventory turnover? 3. Compute the gross margin percentage, and compare it with last year's value of 41 77 percent for Paper Stores. Does this two-year trend suggest better or worse profitability during the current year? Dec. 31 Sales Revenue 291,000 Interest Revenue 3,400 Income Summary 294,400 31 Income Summary 266,900 Cost of Goods Sold 191,000 8,600 4,700 37,600 25,000 Sales Discounts Sales Returns and Allowances Selling Expenses General Expenses Income Summary B. Acorn Capital B. Acom, Capital B. Acorn, Withdrawals 31 27 500 27,500 31 38.000 38,000

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