Problem 6-7A Part 1

Required:

1. Prepare a multiple-step income statement for the month ended July 31, 2021.

Problem 6-7A Prepare a multiple-step income statement and calculate the inventory turnover ratio and gross profit ratio (LO6-2, 6-7) [The following information applies to the questions displayed below.] Baskin-Robbins is one of the world's largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2021. Salaries expense Inventory (July 1, 2021) Sales returns Utilities expense Income tax expense $13,700 2,300 1,100 3,600 6,000 Sales revenue Interest income Cost of goods sold Rent expense Interest expense Inventory (July 31, 2021) $69,800 3,300 28,700 6,700 400 1,100