Selected amounts from the accounting records of Waldron Video Sales for the year ended December 31, 2023, follow:

Required

1. Waldron Video Sales uses the perpetual inventory system. Prepare the business’s multi-step income statement for the year ended December 31, 2023.

2. Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2022, was $25,400 and on December 31, 2023, was $28,600. Last year the turnover rate was 5.42 times. Does this 2-year trend suggest improvement or deterioration in inventory turnover?

3. Compute the gross margin percentage and compare it with last year’s value of 49.18 percent for Waldron Video Sales. Does this 2-year trend suggest better or worse profitability during the current year?

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Dec. 31 31 31 31 Sales Revenue Interest Revenue Income Summary Income Summary Cost of Goods Sold Sales Discounts Sales Returns and Allowances Selling Expenses General Expenses Income Summary Journal Entries B. Waldron, Capital B. Waldron, Capital B. Waldron, Withdrawals 281,400 1,800 254,400 28,800 28,000 283,200 161,200 12,600 6,900 57,800 15,900 28,800 28,000