Computing the gross profit percentage, the rate of inventory turnover, and days in invento...

Computing the gross profit percentage, the rate of inventory turnover, and days in inventory [10 min]

Refer to the Carolina Communications data in Short Exercises 5-10 and 5-11.

Requirement

1. Calculate the gross profit percentage, rate of inventory turnover, and days in inventory ratios for 2012. One year earlier, at July 31, 2011, Carolinas inventory balance was $425.

Preparing a merchandisers income statement [5-10min]

Carolina Communications, Corp., reported the following figures in its financial statements:

Requirement

1. Prepare the business’s multi-step income statement for the year ended July 31, 2012.

Preparing a merchandisers balance sheet [10 min]

Review the data in Exercise.

Requirement

1. Prepare Carolina Communications’ classified balance sheet at July 31, 2012. Use the report format.