The Fun Zone sells a variety of childrens toys, games, books, and accessories. Assume that...
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Accounting
The Fun Zone sells a variety of childrens toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2024.
Sales revenue
$ 77,300
Inventory (March 31, 2024)
$ 1,000
Advertising expense
6,400
Insurance expense
2,300
Rent expense
4,300
Sales discounts
3,000
Gain on sale of building
7,500
Salaries expense
9,400
Inventory (March 1, 2024)
2,800
Income tax expense
4,200
Cost of goods sold
35,800
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.
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