PROBLEM 6.2A: Preparation and interpretation of a Merchandising Company's Income Statement Hendry's Boutique is a retail clothing store for women. The store operates out of a rented building in Storm Lake, Iowa. The following store's adjusted year-end trial balance dated December 31, current year. HENDRY'S BOUTIQUE ADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Cash S 18.240 Accounts receivable 3.120 Merchandise inventory 20.000 Prepaid rent 2.160 Office supplies LOSO Office equipment 49.200 Accumulated depreciation office equipment $ 14. Text Accounts payable 15,300 Sales taxes payable 3,840 Capital stock 21,600 Retained earnings 25.260 Sales 271.200 Sales returns and allowances 3.000 Cost of goods sold 120,690 Purchase discounts lost 300 Utilities expense Office supply expense Depreciation expense: office equipment Rent expense Insurance expense Salaries expense Income taxes expense 624 3.300 7.320 LOSO 105,714 9.828 $351,600 $351.600 INSTRUCTIONS 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? Defend your answer. d. Explain how you can tell the business records inventory purchases net of any purchase discounts. e. The store reports sales taxes payable of 53 840 in its adjusted trial balance. Explain why it does not report any sales taxes expense. f. Which accounts appearing in the store's adjusted trial balance comprise its operating cycle