Assume Party Store has the following account balances for the month of March 2015, and that the company uses a periodic inventory system.

Required:
1. Prepare a multiple-step income statement for the month ended March 31, 2015.
2. Calculate the inventory turnover ratio for the month of March. Would you expect this ratio to be higher or lower in December 2015? Explain.
3. Calculate the gross profit ratio for the month ofMarch.

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S38,500 1,800 1.700 2,900 8,200 6,100 S75,800 Cost of goods sold Inventory (Mar. 31, 2015) Sales revenue 2,800 5,200 Insurance expense 3,300 Sales discounts 6,900 Salaries expense Purchase discounts Advertising expense Rent expense Gain on sale of building Inventory (Mar. 1, 2015 2,200 Income tax expense