Exercise 5-16 (similar to) Question Help Selected amounts from the accounting records of Profound Video Sales for the year ended December 31, 2020, follow. (Click the icon to view the accounting records.) Required 1. Profound Video Sales uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020. 2. Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2019, was $29,000 and on December 31, 2020, was $46,000. Last year the turnover rate was 4.7 times. Does this two-year trend suggest improvement or deterioration in inventory turnover? 3. Compute the gross margin percentage, and compare it with last year's value of 41.13 percent for Profound Video Sales. Does this two-year trend suggest better or worse profitability during the current year? Requirement 1. Profound Video Sales uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020. Begin with the heading, and then complete the body of the statement, one section at a time, as presented. Choose from any drop-down list and then click Check Answer. parts remaining Clear All Check Answer A Accounting records X Dec. 297,000 3,000 300,000 271,200 197,000 8,900 31 Sales Revenue Interest Revenue Income Summary 31 Income Summary Cost of Goods Sold Sales Discounts Sales Returns and Allowances Selling Expenses General Expenses 31 Income Summary B. White, Capital 31 B. White, Capital B. White, Withdrawals 4,300 38,000 23,000 28,800 28,800 30,000 30,000 Print Done