The trial balance and adjustments columns of the work sheet of Western Detail Supply include the following accounts and balances at March 31, 19X2.

Ending inventory at March 31, 19X1, was \(\$ 34,500\).
\section*{Required}
Prepare the company's multiple-step income statement for the year ended March 31, 19X2. Compute the gross margin percentage and the inventory turnover for the year. Compare these figures with the gross margin percentage of 49 percent and the inventory turnover of 3.16 for 19X1. What does the two-year trend suggest about the company's sales pricing strategy this year?

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Trial Balance Adjustments Account Title Debit Credit Debit Credit Cash 2,000 Accounts receivable 8,500 (a) 2,100 Inventory 36,070 (b) 1,170 Supplies 13,000 (c) 8,600 Store fixtures 22,500 Accumulated depreciation 11,250 (d) 2,250 Accounts payable 9,300 Salary payable (e) 1,200 Note payable, long-term 7,500 Common stock 20,000 Retained earnings Dividends 13,920 45,000 Sales revenue 213,000 (a) 2,100 Sales discounts 2,000 Cost of goods sold 111,600 (b) 1,170 Selling expense 21,050 (c) 5,200 (e) 1,200 General expense 10,500 (c) 3,400 (d) 2,250 Interest expense 2,750 Total 274,970 274,970 15,320 15,320