Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following prof analysis for the year just ended. Sales Less: Cost of food Gross profit Less: Operating expenses: Wages of counter personnel Paper products (e.g., napkins) Utilities (allocated) Depreciation of counter equipment and furnishings Depreciation of building (allocated) Deli manager's salary (allocated) Total Loss on ice cream counter Required: Correct the owner's profit analysis for the year just ended. Less: Operating expenses Total $ 16,000 6,000 3,900 3,500 6,000 4,000 $ 65,000 30,000 $ 35,000 39,400 $ (4,400)

Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following prof analysis for the year just ended. Sales Less: Cost of food Gross profit Less: Operating expenses: Wages of counter personnel Paper products (e.g., napkins) Utilities (allocated) Depreciation of counter equipment and furnishings Depreciation of building (allocated) Deli manager's salary (allocated) Total Loss on ice cream counter Required: Correct the owner's profit analysis for the year just ended. Less: Operating expenses Total $ 16,000 6,000 3,900 3,500 6,000 4,000 $ 65,000 30,000 $ 35,000 39,400 $ (4,400)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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