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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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