Question
Baskin-Robbins is one of the worlds largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso
Baskin-Robbins is one of the worlds largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2018.
Salaries expense | $12,800 | Sales revenue | $65,300 |
Inventory (July 1, 2018) | 1,850 | Interest income | 2,400 |
Sales returns | 1,100 | Cost of goods sold | 28,250 |
Utilities expense | 3,150 | Rent expense | 5,800 |
Income tax expense | 5,100 | Interest expense | 400 |
Inventory (July 31, 2018) | 1,100 | ||
A: Prepare a multiple-step income statement for the month ended July 31, 2018 B: Calculate the inventory turnover ratio for the month of July. C: Would you expect this ratio to be higher or lower in December 2018? D: Calculate the gross profit ratio for the month of July. |
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