Hendry's Boutique is a retail clothing store for women. The store operates out of a rented building in Storm Lake, lows. The following is the store's adjusted year-end trial balance dated December 31, current year. HENDRY'S BOUTIQUE Adjusted Trial Balance December 31, current year Cash Accounts receivable Merchandise inventory Office supplies Prepaid rent Office equipment Accumulated depreciation: office equipment Accounts payable Sales taxes payable $ 20,640 3,760 29,000 2,960 2,040 54,000 $ 16,000 16,900 4,160 Capital stock Retained earnings 24,800 38,688 Sales Sales returns and allowances 306,400 2,900 Cost of goods sold 145,680 Purchase discounts lost 1,100 Utilities expense 6,896 Office supply expense 1,136 Depreciation expense: office equipment 4,900 Rent expense 8,280 Insurance expense 1,450 Salaries expense 110,418 Income taxes expense 11,780 406,940 5406,940 Required: a. Prepare an income statement for Hendry's Boutique dated December 31, current year. b. Compute the store's gross profit margin as a percentage of net sales. c. Do the store's customers seem to be satisfied with their purchases? f. Which accounts appearing in the store's adjusted trial balance comprise its operating cycle? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Cash Accounts receivable Merchandise inventory ? Prepaid rent Office supplies