Ames Power Point had sales in October of $28,000,000 for its three stores in Toronto.The beginning merchandise inventories for October and November were $5,000,000 and $4,000,000, respectively.October purchases totalled $19,000,000.All sales are on account (terms 2/15, net 30 days)and are collected 50 percent in the month of the sale and 50 percent in the following month.One-half of all sales discounts are taken for a total of $265,000.September sales totalled $25,000,000 while November sales were $30,000,000.Additional information for October is as follows: Required:
Using an appropriately formatted income statement, determine the operating income of the company.

Question

Ames Power Point had sales in October of $28,000,000 for its three stores in Toronto.The beginning merchandise inventories for October and November were $5,000,000 and $4,000,000, respectively.October purchases totalled $19,000,000.All sales are on account (terms 2/15, net 30 days)and are collected 50 percent in the month of the sale and 50 percent in the following month.One-half of all sales discounts are taken for a total of $265,000.September sales totalled $25,000,000 while November sales were $30,000,000.Additional information for October is as follows:  Required:
Using an appropriately formatted income statement, determine the operating income of the company.

Quizplus · Accepted Answer

The Answer of Ames Power Point had sales in October of $28,000,000 for its three stores in Toronto.The beginning merchandise inventories for October and November were $5,000,000 and $4,000,000, respectively.October purchases totalled $19,000,000.All sales are on account (terms 2/15, net 30 days)and are collected 50 percent in the month of the sale and 50 percent in the following month.One-half of all sales discounts are taken for a total of $265,000.September sales totalled $25,000,000 while November sales were $30,000,000.Additional information for October is as follows:  Required:
Using an appropriately formatted income statement, determine the operating income of the company.

Ames Power Point Had Sales in October of $28,000,000 for Its