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

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, Carolina’s inventory balance was $425.

Refer to the Carolina Communications data in Short Exercises.

Exercises

Preparing a merchandiser’s balance1 sheet

Review the data in Short Exercise.

Requirement

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

Exercise

Preparing a merchandiser’s income statement

Carolina Communications 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.