Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the following: Depreciation Training Transportation Publicity Permanent staff Temporary staff Invoicing and records. Administrative Resources Used $ 56,550 29,250 52,000 72,800 146,250. 269,750 24,375 45,500 Resources Supplied $ 58,175 35,100 55,575 78,000 201,500 276,250 4 a. Prepare a traditional income statement. b. Prepare an activity-based income statement. 27,300 51,350 Required: Management has requested that you do the following:
Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the following: Depreciation Training Transportation Publicity Permanent staff Temporary staff Invoicing and records. Administrative Resources Used $ 56,550 29,250 52,000 72,800 146,250. 269,750 24,375 45,500 Resources Supplied $ 58,175 35,100 55,575 78,000 201,500 276,250 4 a. Prepare a traditional income statement. b. Prepare an activity-based income statement. 27,300 51,350 Required: Management has requested that you do the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and
corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the
following:
Depreciation
Training
Transportation
Publicity
Permanent staff
Temporary staff
Invoicing and records
Administrative
Resources
Used
$ 56,550
29,250
52,000
72,800
146,250
269,750
24,375
45,500
Resources
Supplied
$ 58,175
35,100
55,575
78,000
201,500
276,250
27,300
51,350
Required:
Management has requested that you do the following:
A
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
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