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.

Required:
1. Prepare a multiple-step income statement for the month ended March 31, 2024.
2. Calculate the inventory turnover ratio for the month of March. Would you expect this ratio to be higher or lower in December 2024? Explain.
3. Calculate the gross profit ratio for the month of March.

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Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (Mar. 1, 2024) Cost of goods sold $77,300 6,400 4,300 7,500 2,800 35,800 Inventory (Mar. 31, 2024) Insurance expense Sales discounts Salaries expense Income tax expense $1,000 2,300 3,000 9,400 4,200