Requirement 1: Net sales: Total sales revenue Less: Sales returns Net sales revenue Cost of goods sold Gross Profit Operating Expenses: Salaries Utilities Rent BASKIN-ROBBINS Multiple-step Income Statement For the month of July, 2021 Total Operating Income Non-operating items: Interest income Interest expense Total Income before income taxes Income tax expense Net income Requirement 2: Inventory turnover ratio Cost of goods sold Average inventory Requirement 3: Gross profit ratio Gross profit Net sales Salaries expense Inventory (July 1, 2021) Sales returns Utilities expense Income tax expense BASKIN-ROBBINS Account Balances July, 2021 $ 13,700 Sales revenue $ 69,800 2,300 Interest income 3,300 1,100 Cost of goods sold 28,700 3,600 Rent expense 6,700 6,000 Interest expense 400 Inventory (July 31, 2021) 1,100 P6-7A 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) $13.700 Sales revenue $69,800 2,300 Interest income 1.100 Cost of goods sold 3,300 28,700 Income tax expense 3,600 Rent expense 6.000 Interest expense 6,700 400 Inventory (July 31, 2021) 1.100 Sales returns Utilities expense Required: 1. Prepare a multiple-step income statement for the month ended July 31, 2021. 2. Calculate the inventory turnover ratio for the month of July. Would you expect this ratio to be higher or lower in December 2021? Explain. 3. Calculate the gross profit ratio for the month of July