Selected amounts from the accounting records of

Presley Video Sales

for the year ended December 31,

2020,

follow.

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(Click the icon to view the accounting records.)

Required

1.	Presley Video Sales uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020.
2.	Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2019, was $37,000 and on December 31, 2020, was $44,000. Last year the turnover rate was 3.67 times. Does this two-year trend suggest improvement or deterioration in inventory turnover?
3.	Compute the gross margin percentage, and compare it with last year's value of 49.48 percent for Presley Video Sales. Does this two-year trend suggest better or worse profitability during the current year?

Selected amounts from the accounting records of Presley Video Sales for the year ended December 31, 2020, follow. (Click the icon to view the accounting records.) Required 1. Presley Video Sales uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020. 2. Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2019, was $37,000 and on December 31, 2020, was 544,000. Last year the turnover rate was 3.67 times. Does this two-year trend suggest improvement or deterioration in inventory turnover? 3. Compute the gross margin percentage, and compare it with last year's value of 49.48 percent for Presley Video Sales. Does this two-year trend suggest better or worse profitability during the current year? - Requirement 1. Presley Video Sales uses the perpetual inventory system. Prepare the business's multi-step income statement for the year ended December 31, 2020 Begin with the heading, and then complete the body of the statement, one section at a time, as presented. Accounting records x Dec. 31 Sales Revenue 293,000 3,000 Interest Revenue Income Summary 296,000 31 Less: 240,900 Income Summary Cost of Goods Sold Sales Discounts 171,000 8,500 4,500 Sales Returns and Allowances Selling Expenses General Expenses 37,900 19,000 31 55,100 Net sale Cost of goods sold General expenses Gross margin Interest revenue Operating e Net income Net sales revenue Operating expenses Operating income Other revenue: Other rever Sales discounts Sales returns and allowances Sales revenue 55,100 Income Summary B. Presley, Capital B. Presley, Capital B. Presley, Withdrawals 31 30,000 30,000 Print Done Net income Selling expenses Requirement 2. Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2019, was $37,000 and on December 31, 2020, was $44,000. Last year the turnover rate was 3.67 times. Does this two-year trend suggest improvement or deterioration in inventory turnover? (Round the inventory turnover ratio to two decimal places, X.XX.) The rate of inventory turnover for the year is When compared to last year's inventory turnover of 3.67 times, this year's inventory turnover rate V improvement because this year's inventory turnover is last year's Requirement 3. Compute the gross margin percentage, and compare it with last year's value of 49.48 percent for Presley Video Sales. Does this two-year trend suggest better or worse profitability during the current year? (Enter the gross margin percentage as a percentage rounded to two decimal places, X.XX%.) Gross margin percentage = % When compared to last year's gross margin percentage of 49.48 percent, this year's gross margin percentage improvement because this year's gross margin percentage is last year's Choose from any list or enter any number in the input fields and then continue to the next