Custodian Commandos Inc. provides janitorial services to public school systems. The business adjusts its accounts monthly but closes them only at year-end. Its fiscal year ends on December 31. A summary of the company's total revenue and expenses at the end of five selected months are as follows: Total Revenue March 31 $69,000 June 30 $129,000 August 31 $134,000 September 30 $159,000 December 31 $249,000 Total Expenses March 31 $48,000 June 30 $90,000 August 31 $115,000 September 30 $130,000 December 31 $175,000 Required: a.) Rank the company's fiscal quarters from most profitable to least profitable. b.) Compute the company's income for the month of September. c.) Compute the company's net income (or loss) for the first two months of the third quarter. Provide a possible explanation why profitability for the first two months of the third quarter differs significantly from profitability achieved in the third month of the quarter (as computed in part b).
Custodian Commandos Inc. provides janitorial services to public school systems. The business adjusts its accounts monthly but closes them only at year-end. Its fiscal year ends on December 31. A summary of the company's total revenue and expenses at the end of five selected months are as follows: Total Revenue March 31 $69,000 June 30 $129,000 August 31 $134,000 September 30 $159,000 December 31 $249,000 Total Expenses March 31 $48,000 June 30 $90,000 August 31 $115,000 September 30 $130,000 December 31 $175,000 Required: a.) Rank the company's fiscal quarters from most profitable to least profitable. b.) Compute the company's income for the month of September. c.) Compute the company's net income (or loss) for the first two months of the third quarter. Provide a possible explanation why profitability for the first two months of the third quarter differs significantly from profitability achieved in the third month of the quarter (as computed in part b).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Custodian Commandos Inc. provides janitorial services to public
school systems. The business adjusts its accounts monthly but
closes them only at year-end. Its fiscal year ends on December 31.
A summary of the company's total revenue and expenses at the end
of five selected months are as follows:
Total Revenue
March 31
$69,000
June 30
$129,000
August 31
$134,000
September 30
$159,000
December 31
$249,000
Total Expenses
March 31
$48,000
June 30
$90,000
August 31
$115,000
September 30
$130,000
December 31
$175,000
Required:
a.) Rank the company's fiscal quarters from most profitable to least
profitable.
b.) Compute the company's income for the month of September.
c.) Compute the company's net income (or loss) for the first two
months of the third quarter. Provide a possible explanation why
profitability for the first two months of the third quarter differs
significantly from profitability achieved in the third month of the
quarter (as computed in part b).
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