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

question 83

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:

Coefficient

In algebraic expressions, a variable is multiplied by a numerical or constant figure placed before it, acting as a multiplier.

Constant

A value that does not change and remains the same in mathematical equations, experiments, and various scientific contexts.

Regression

A statistical technique employed to identify the intensity and nature of the connection between a single dependent variable and one or more independent variables.

Scatterplot

A graphical representation that displays the relationship between two quantitative variables by using dots.