Question

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 $12,689 Sales revenue 1,750 Interest income 1,000 Cost of goods sold 3,050 Rent expense 4,980 Interest expense Inventory (July 31, 2021) $64,300 2,200 28,150 5,600 300 1,000 Required: 1. Prepare a multiple-step income statement for the month ended July 31, 2021

Answer 1

1 BASKIN-ROBBINS multi step income statement for the month of july, 2021 net sales: total sales revenue less: sales returns net sales revenue less: cost of goods sold gross profit operating expenses utilities expense rent expense total operating income non operating items: |add: interest income $64,300 $1,000 $63,300 $28,150 $35,150 $3,050 $5,600 $8,650 $26,500 $2,200 $300 less: interest expense total income before tax less: income tax expense net income $1,900 $28,400 $4,900 $23,500

inventory turnover ratio / 2a cost of goods sold inventory turnover ratio average inventory $28,150 / $1,375 20.47 gross profit ratio gross profit $35,150 net sales gross profit ratio $63,300 0.56

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