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[The following information applies to the questions displayed below.] Baskin-Robbins is one of the world’s largest...

[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 2018.

  Salaries expense $13,300      Sales revenue $67,800
  Inventory (July 1, 2018) 2,100      Interest income 2,900
  Sales returns 1,200      Cost of goods sold 28,500
  Utilities expense 3,400      Rent expense 6,300
  Income tax expense 5,600      Interest expense 500
        Inventory (July 31, 2018) 1,200


1. Prepare a multiple-step income statement for the month ended July 31, 2018.

2-a. Calculate the inventory turnover ratio for the month of July.

2-b. Would you expect this ratio to be higher or lower in December 2018?

3. Calculate the gross profit ratio for the month of July.

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ekkarill92 answered 2 years ago
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