Big Bird Pet Store Had the Following Financial Activities for June.Revenue

question 124

Essay

Big Bird Pet Store had the following financial activities for June.Revenue was $860,000 with cost of goods sold equalling $440,000.Salaries and wages of all employees were $100,000.Fringe benefits were 15 percent of salaries and wages.Rent on the building was $100,000 and equipment amortization was $46,000.Office supplies and utilities totalled $28,000.Income taxes withheld from employees totalled $46,000 for the month while ending accounts payable were $24,680.Cash flows from accounts receivable totalled $880,000.Required:
Using an income statement format, determine the operating income of the store.

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Definitions:

Preferred Shares

Type of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often with fixed dividends.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Acquisition

The process of acquiring control of a company by purchasing its shares or assets, effectively resulting in a change of ownership.

Restricted Shares

types of stock which are subject to certain restrictions, typically related to the vesting period, and are not fully transferrable until certain conditions are met.