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 2012.

Sales revenue..................................$72,300

Cost of goods sold...........................$35,300

Purchase discounts..............................2,200

Inventory (Mar. 31, 2012)......................1,100

Advertising expense.............................5,400

Insurance expense...............................1,800

Rent expense.....................................3,300

Sales discounts...................................2,500

Gain on sale of building........................6,500

Salaries expense.................................8,400

Inventory (Mar. 1, 2012).......................2,300

Income tax expense.............................3,200

Required:

1. Prepare a multiple-step income statement for the month ended March 31, 2012.

2. Calculate the inventory turnover ratio for the month of March. Would you expect this ratio to be higher or lower in December 2012? Explain.

3. Calculate the gross profit ratio for the month of March.