The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2024. Sales revenue Advertising expense Rent expense $ 70,800 Inventory (March 31, 2024) 5,100 Insurance expense $1,000 1,650 Gain on sale of building 3,000 Sales discounts 6,200 Salaries expense 2,350 8,100 Inventory (March 1, 2024) Cost of goods sold 2,150 Income tax expense 35,150 2,900 Required: 1. Prepare a multiple-step income statement for the month ended March 31, 2024. 2-a. Calculate the inventory turnover ratio for the month of March. 2-b. Would you expect this ratio to be higher or lower in December 2024? 3. Calculate the gross profit ratio for the month of March. Complete this question by entering your answers in the tabs below. Required 1 Required 2a Required 2b Required 3

The Fun Zone sells a variety of children's toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2024. Sales revenue Advertising expense Rent expense $ 70,800 Inventory (March 31, 2024) 5,100 Insurance expense $1,000 1,650 Gain on sale of building 3,000 Sales discounts 6,200 Salaries expense 2,350 8,100 Inventory (March 1, 2024) Cost of goods sold 2,150 Income tax expense 35,150 2,900 Required: 1. Prepare a multiple-step income statement for the month ended March 31, 2024. 2-a. Calculate the inventory turnover ratio for the month of March. 2-b. Would you expect this ratio to be higher or lower in December 2024? 3. Calculate the gross profit ratio for the month of March. Complete this question by entering your answers in the tabs below. Required 1 Required 2a Required 2b Required 3

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 3EB: Flip or Flop is a retail shop selling a wide variety of sandals and beach footwear. In 2019, they...

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Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021. Sales revenue $ 74,800 Inventory (Mar. 31, 2021) $ 1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 2-a. Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio = =
Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021. Sales revenue $74,800 Inventory (Mar. 31, 2021) $1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 Required:1. Prepare a multiple-step income statement for the month ended March 31, 2021. TOYS "R" US Multiple-step Income Statement For the month of March 2021 Net sales: Total sales revenue Less: Sales discounts Net sales revenue Operating expenses: Total 0 Operating income Non-operating items: Total
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Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021. Sales revenue $ 74,800 Inventory (Mar. 31, 2021) $ 1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 3. Calculate the gross profit ratio for the month of March. Gross Profit Ratio = = 0
Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021.Sales revenue $77,300 Inventory (Mar. 31, 2021) $1,000 Advertising expense 6,400 Insurance expense 2,300 Rent expense 4,300 Sales discounts 3,000 Gain on sale of building 7,500 Salaries expense 9,400 Inventory (Mar. 1, 2021) 2,800 Income tax expense 4,200 Cost of goods sold 35,800Required: 1. Prepare a multiple-step income statement for the month ended March 31, 2021. 2. Calculate the inventory turnover ratio for the month of March. Would you expect this ratio to be higher or lower in December 2021? Explain. 3. Calculate the gross profit ratio for the month of March.
oys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021. Sales revenue $74,800 Inventory (Mar. 31, 2021) $1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 3. Calculate the gross profit ratio for the month of March. Gross Profit Ratio Gross profit = = 0 Net sales =
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