Analyzing and Interpreting an Income Statement Three individuals organized Pest Away Corporation on January 1, 2012 to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of 2012 the first year of operations, the following income statement was prepared: 11eb7f6e_0074_3db0_9b93_3fe371ba8a9e_SM1709_00 Required: 1. What was the amount of average monthly revenue 2. What was the average amount of monthly salaries and wages expense 3. Explain why advertising is reported as an expense. 4. Explain why the dividends are not reported as an expense. 5. Can you determine how much cash the company had on December 31, 2012 Answer yes or no, and explain your reasoning.

Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

النسخة 4الرقم المعياري الدولي: 978-0078025372

Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

النسخة 4الرقم المعياري الدولي: 978-0078025372

تمرين 39

Analyzing and Interpreting an Income Statement
Three individuals organized Pest Away Corporation on January 1, 2012 to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of 2012 the first year of operations, the following income statement was prepared:

Required:
1. What was the amount of average monthly revenue
2. What was the average amount of monthly salaries and wages expense
3. Explain why advertising is reported as an expense.
4. Explain why the dividends are not reported as an expense.
5. Can you determine how much cash the company had on December 31, 2012 Answer yes or no, and explain your reasoning.

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موثّق

1.
Calculate the amount of average mont...