Cash (from start up in November 2005 Balance sheet) $10,172
accounts receivable $870
minus ending cash (what shows up as cash on hand in March 2006) ($1,341)
cash received from customers $43,480
for a total of Total revenues $53,181
Then for inventory:
Food and beverage supplies (purchased in November 2005) $2,800
cash purchases for the five months $10,016
credit purchases (in November 2005) $1,583
minus ending inventory (what is shown as inventory in March 2006) ($2,430)
For a total food and beverage of $11,969
Am i thinking right on this in order to create an incomes statement from two balance sheets (one from Nov 2005 and one from March 2006)?
Does depreciation get prorated for the length of time I am creating the Income Statement? Also operating license expense? Or do I include the whole expense for the entire 12 month period since it is an income statement on an accrual basis?
thank you for your assistance.
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I have attached the revised income statement with this posting as well as with the other posting. I'll answer ...
The solution answers the question below in great detail. The income statement for inventory and sales is determined.