8) Assume Party Store has the following account balances for the month of March 2021, and that the company uses a perpetual inventory system. Sales revenue $75,800 Cost of goods sold $38,500 Inventory (Mar 31, 2021) 1,800 Advertising expense 5,200 Insurance expense 1.700 Rent expense 3,300 Sales discounts 2,900 Gain on sale of building 6,900 Salaries expense 8,200 Inventory (Mar. 1, 2021) 2,200 Income tax expense 6,100 Required: 1. Prepare a multiple-step income statement for the month ended March 31, 2021. 2. Calculate the inventory turnover ratio for the month of March. Would you expect this ratio to be higher or lower in December 2021? Explain. 3. Calculate the gross profit ratio for the month of March. Answer: Requirement 1 Party Store Multiple-Step Income Statement For the month ended March 31, 2021 Net sales: Total sales revenue $75,800 Net sales Gross Profit Total 18.400 Operating income Nonoperating items: 16,000 Income before income taxes Net income $16.800