Selected amounts from the accounting records of Waldron Video Sales for the year ended December 31, 2017, follow:

Required
1. Waldron Video Sales uses the perpetual inventory system. Prepare the business's multistep income statement for the year ended December 31, 2017.
2. Compute the rate of inventory turnover for the year. The inventory balance on December 31, 2016, was $25,400 and on December 31, 2017, was $28,600. Last year the turnover rate was 5.42 times. Does this two-year trend suggest improvement or deterioration in inventory turnover?

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Journal Entries Dec. 31 Sales Revenue 281,400 Interest Revenue 1,800 Income Summary 283,200 31 Income Summary 254,400 Cost of Goods Sold Sales Discounts Sales Returns and Allowances Selling Expenses General Expenses 161,200 12,600 6,900 57,800 15,900 31 Income Summary 28,800 B. Waldron, Capital 28,800 31 B. Waldron, Capital 28,000 B. Waldron, Withdrawals 28,000