Hendry's Boutique is a retail clothing store for women. The store operates out of a rented building in Stom Lake, Jowa. Shown below is the store's adjusted year$-$end trial balance dated December $31,2011.$

HENDRY'S BOUTIQUE ADJUSTED TRIAL BALANCE DECEMBER $31,2011$

Instructions

a$.$ Prepare an income statement for Hendry's Boutique dated December $31,2011.$

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? Defend your answer.

d$.$ Explain how you can tell that the business records imventory purchases net of any purchase discounts.

e$.$ The store reports sales taxes payable of $$3,200$ in its adjusted trial balance. Explain why it does aot report any sales faxes expense.

f$.$ Which accounts appearing in the store's adjusted trial balance comprise its operating cycle?