Sales $45,000 Less: Cost of food 20,000 Gross profit . $25,000 Less: Operating expenses: Wages of counter personnel $12,000 Paper products (e.g., napkins) 4,000 Utilities (allocated) 2,900 Depreciation of counter equipment and furnishings 2,500 Depreciation of building (allocated) 4,000 Deli manager's salary (allocated) 3,000 Total . 28,400 Loss on ice cream counter $(3,400)

Sales $45,000 Less: Cost of food 20,000 Gross profit . $25,000 Less: Operating expenses: Wages of counter personnel $12,000 Paper products (e.g., napkins) 4,000 Utilities (allocated) 2,900 Depreciation of counter equipment and furnishings 2,500 Depreciation of building (allocated) 4,000 Deli manager's salary (allocated) 3,000 Total . 28,400 Loss on ice cream counter $(3,400)

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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This is a repost. Please read questions carefully as original response was entirely incorrect
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