Reference no: EM132966978

Question - Lisa's Fine Furniture has the following trial balance at their year-end, October 31, 20XX. Lisa's Fine Furniture Trial Balance October 31, 20XX Debit Credit Accounts receivable $66,000 Accounts payable $20,000 Accumulated depreciation, store cash register 1,600 Accumulated depreciation, store fixtures 4,000 Advertising expense 1,500 Cash 23,000 Cost of goods sold 215,900 Depreciation expense, store cash register 800 Depreciation expense, store fixtures 2,000 Insurance expense for inventory 2,500 Interest expense 400 Inventory 220,000 Notes payable 6,000 Rent expense, office 16,000 Rent expense, sales 5,000 Rent revenue 1,500 Salaries expense, selling 15,000 Salaries expense, office 13,000 Sales 300,000 Sales discounts 800 Sales returns and allowances 14,000 Screen, capital 290,000 Screen, withdrawals 1,100 Store cash register 2,400 Store fixtures 6,000 Supplies 13,700 Supplies expense, store 4,000 Totals $623,100 $623,100

REQUIRED -

1) Prepare a classified multi-step income statement for Lisa's Fine Furniture as of October 31, 20XX.

2) Calculate Lisa's Fine Furniture's Gross Profit Ratio (GPR) and explain what this GPR tells us about Lisa's Fine Furniture.