Use the following information to fill in the Income Statement in the figure above. Then, answer the question. The period from September 1 through September 30. Sales: $1,843.00 Advertising: 20.00 Food Services: 65.80 Licenses: 58.00 Payroll Taxes: 136.90 Maintenance: 22.50 Rent/Mortgage: 520.00 Office Supplies: 28.60 Utilities: 52.90 Wages: 843.00 After completing the form in Exam Figure B, you find that there is _______ for the period from September 1 through September 30.
A. a loss of $95.30
B. a loss of $4.70
C. a profit of $95.30
D. no profit or loss
C.
To determine the answer, we need to subtract the expenses from the sales. Let's add up the expenses:
Advertising: $20.00
Food Services: $65.80
Licenses: $58.00
Payroll Taxes: $136.90
Maintenance: $22.50
Rent/Mortgage: $520.00
Office Supplies: $28.60
Utilities: $52.90
Wages: $843.00
Total Expenses = $20.00 + $65.80 + $58.00 + $136.90 + $22.50 + $520.00 + $28.60 + $52.90 + $843.00 = $1,758.70
Now, let's subtract the total expenses from the sales:
Sales - Total Expenses = $1,843.00 - $1,758.70 = $84.30
The result is $84.30, which means there is a profit of $84.30 for the period from September 1 through September 30.
Since the answer choices are given in terms of loss or profit, we need to convert the positive profit to a loss.
Loss = (Profit) * (-1) = $84.30 * (-1) = -$84.30
Therefore, the correct answer is A. a loss of $95.30