Best,Inc ,A Merchandiser,sells Office Supplies Required: Prepare an Income Statement for Best,Inc

question 40

Essay

Best,Inc. ,a merchandiser,sells office supplies.The following information summarizes Best's operating activities during the year:
$$\begin{array} { | l | r | } \hline \text { Utilities Expense } & \$ 6,000 \\\hline \text { Rent for Store Expense } & 8,000 \\\hline \text { Sales Commissions Expense } & 4,500 \\\hline \text { Purchases of Merchandise } & 54,000 \\\hline \text { Merchandise Inventory on January 1 } & 30,000 \\\hline \text { Merchandise Inventory on December 31 } & 20,500 \\\hline \text { Sales Revenue } & 108,000 \\\hline\end{array}$$ Required: Prepare an income statement for Best,Inc.for the year ended December 31,using the format below.
$$\begin{array} { | l | l | l | } \hline \text { Sales Revenue } & \quad\quad&\quad\quad \\\hline \text { Cost of Goods Sold: } & & \\\hline \text { Beginning Inventory } & & \\\hline \text { Purchases } & & \\\hline \text { Cost of Goods Available for Sale } & & \\\hline \text { Ending Inventory } & & \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Gross Profit } & & \\\hline \text { Selling Expenses: } & & \\\hline \text { Sales Commissions Expense } & & \\\hline \text { Administrative Expenses: } & & \\\hline \text { Rent Expense } & & \\\hline \text { Utilities Expense } & & \\\hline \text { Total Operating Expenses } & & \\\hline \text { Operating Income } & & \\\hline\end{array}$$

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Definitions:

Operant Conditioning

A system of learning in which the expression of behavior is controlled through the use of incentives or penalizations.

Phobias

Extreme or irrational fears or aversions to specific objects, situations, or activities that cause significant distress or impairment.

Negative Reinforcement

A behavioral concept where the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated in the future.

Punishers

Stimuli that decrease the likelihood of a behavior being repeated, used in the context of behavioral psychology.