Ames Power Point Had Sales in October of $28,000,000 for Its

question 149

Essay

Ames Power Point had sales in October of $28,000,000 for its three stores in Toronto. The beginning merchandise inventories for October and November were $5,000,000 and $4,000,000, respectively. October purchases totalled $19,000,000. All sales are on account (terms 2/15, net 30 days) and are collected 50 percent in the month of the sale and 50 percent in the following month. One-half of all sales discounts are taken for a total of $265,000. September sales totalled $25,000,000 while November sales were $30,000,000. Additional information for October is as follows:
Required:
Using an appropriately formatted income statement, determine the operating income of the company.

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Definitions:

External Adaptation

The process through which an organization or individual adjusts to changes in the external environment to survive and thrive.

Measurement

The process of quantifying variables or attributes through specific units or scales to assess or compare different entities.

Role Models

Individuals or entities admired for their ways of being or behaviors, serving as examples for others to emulate.

CEO Semco

Refers to the Chief Executive Officer of Semco, a Brazilian company known for its radical form of corporate democracy and industrial democracy.