Problem $6-7$A $($Algo$)$ Prepare a multiple$-$step income statement and calculate the inventory turnover ratio and gross profit ratio $($LO$6-2,6-7)$

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 $2024.$

Salaries expense $$12,600$ Sales revenue $$64,300$

Inventory $($July $1,2024)1,750$ Interest income $2,200$

Sales returns $1,000$ Cost of goods sold $28,150$

Utilities expense $3,050$ Rent expense $5,600$

Income tax expense $4,900$ Interest expense $300$

Inventory $($July $31,2024)1,000$

Required:

$1.$ Prepare a multiple$-$step income statement for the month ended July $31,2024.$

$2-$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 $2024?$

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