Required information Problem 6-7B Prepare a multiple-step income statement and calculate the inventory turnover ratio and gross profit ratio (LO6-2, 6-7) (The following information applies to the questions displayed below.) Toys R Us 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 2021. Sales revenue Advertising expense Rent expense Gain on sale of building Inventory (Mar. 1, 2021) Cost of goods sold $76,300 6,200 4,100 7,300 2,700 35,700 Inventory (Mar. 31, 2021) Insurance expense Sales discounts Salaries expense Income tax expense $1,200 2,200 2,900 9,200 4,000 Problem 6-7B Part 2 2-a. Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio Cost of goods sold Average inventory 0 2-b. Would you expect this ratio to be higher or lower in December 2021? Higher Lower Problem 6-7B Part 3 3. Calculate the gross profit ratio for the month of March. Gross Profit Ratio Gross profit II = 0 Net sales