Lisa's Fine Furniture has the following trial balance at their year-end, October 31, 20XX.

Lisa's Fine Furniture

Trial Balance

October 31, 20XX

Accounts receivable $66,000 - debit

Accounts payable $20,000 - credit

Accumulated depreciation, store cash register 1,600 - credit

Accumulated depreciation, store fixtures 4,000 - credit

Advertising expense 1,500 Cash 23,000 -debit

Cost of goods sold 215,900 - debit

Depreciation expense, store cash register 800 - debit

Depreciation expense, store fixtures 2,000 - debit

Insurance expense for inventory 2,500 - debit

Interest expense 400 - debit

Inventory 220,000 - debit

Notes payable 6,000 - credit

Rent expense, office 16,000 - debit

Rent expense, sales 5,000 - debit

Rent revenue 1,500 - credit

Salaries expense, selling 15,000 - debit

Salaries expense, office 13,000 - debit

Sales 300,000 - credit

Sales discounts 800 - debit

Sales returns and allowances 14,000 - debit

Screen, capital 290,000 - credit

Screen, withdrawals 1,100 - debit

Store cash register 2,400 - debit

Store fixtures 6,000 - debit

Supplies 13,700 - debit

Supplies expense, store 4,000 debit

Totals $623,100 - debit $623,100 - credit

REQUIRED: 1) Prepare a classified multi-step income statement for Lisa's Fine Furniture as of October 31, 20XX.

2) Calculate Lisas Fine Furnitures Gross Profit Ratio (GPR) and explain what this GPR tells us about Lisas Fine Furniture.