Problem 6.2A Preparation and Interpretation of a Merchandising Company's Income Statement (L06-1, LO6-2, LO6-3, L06-6, LO6-8) Hendry's Boutique is a retail clothing store for women. The store operates out of a rented building in Storm Lake, lowa. 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 $ 20,640 Accounts receivable 3,760 Merchandise Inventory 29,000 Prepaid rent 2,960 office supplies 2,040 office equipment 54,000 Accumulated depreciation office equipment $ 16,000 Accounts payable 16,900 Sales taxes payable 4,160 Capital stock 24,00 Retained earnings 38,680 Sales 306,400 Sales returns and allowances 2,900 Cost of goods sold 145,630 Purchase discounts lost 1,100 utilities expense 6,896 office supply expense Depreciation expense: office equipment 4,900 Rent expense 8,280 Insurance expense 1,450 Salaries expense 110,418 Income taxes expense 11.2BD 406, MO 406,940 Required: a. Prepare an income statement for Hendry's Boutique dated December 31, current year. HENDRY'S BOUTIQUE Income Statement For the Year Ended December 31, Current Year 0 0 Other expenses 0 0 0 b. Compute the store's gross profit margin as a percentage of net sales. Grass profit margin % c. Do the store's customers seem to be satisfied with their purchases? O Yes ONo f. Which accounts appearing in the store's adjusted trial balance comprise its operating cycle? [You may select more than one answet 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 2 Accounts receivable Merchandise inventory Prepaid rent office supplies