Selected amounts from the accounting records of Handy Dan Home Products are listed in alphabetical order.

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Prepare the business's multiple-step income statement for June of the current year. In a separate schedule, show the computation of cost of goods sold. Compute the rate of inventory turnover. Last year the turnover was 3.8 times. Does this two-year trend suggest improvement or deterioration in profitability?

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Accounts receivable $48,300 Accumulated depreciation... 18,700 Purchases of inventory. Purchase discounts $ 91,300 3,000 Cost of goods sold. Purchase returns.. 2,000 Freight in 2,200 Sales discounts.. 9,000 General expenses 23,800 Sales returns: 4,600 Interest revenue 1,500 Sales revenue 201,000 Inventory, June 30. 21,870 Selling expenses. 37,840 Inventory, May 31. 19,450 Stockholders' equity, May 31. 126,070 Unearned sales revenue................. 6,500