Question 3: Coras Computers uses the Periodic Inventory System and has a December 31st year-end. The company began the year with inventory with a cost of $18,600. When Coras staff counted inventory at December 31, inventory with a cost of $22,500 were on hand. The company also had the following account balances for the year (random order, all with normal balances):

Office Supplies Expense 4,700

Purchases $199,500

Sales Discounts 2,400

Advertising Expense 11,300

Interest Income 2,000

Freight In 16,400

Freight Out 12,200

Sales person Salaries 61,500

Sales Returns and Allowances 10,200

Loss on Sale of PP&E 550 Purchase Returns and Allowances 9,800

Sales Revenue 325,000 Purchase Discounts

1,800 Management Salaries 19,800 Required:

1) Prepare a Multi-Step Income Statement (full detail) for the year-ended December 31, 2020.

2) Calculate: a) Gross Margin % b) Inventory Turnover c) Days in Inventory.