Partial Income Statements of Company a and Company B Are

question 59

Multiple Choice

Partial income statements of Company A and Company B are provided below: Company A
$$\begin{array} { | l | r | r | } \hline \text { Revenue } & & \$ 80,000 \\\hline \text { Expenses: } & & \\\hline \text { Utilities Expense } & \$ 5,000 & \\\hline \text { Salaries Expense } & 15,000 & \\\hline \text { Rent Expense } & \underline { 3,2000 } & \\\hline \text { Total Expenses } & & \underline { 23,700 } \\\hline \text { Operating Income } & & \$ 56,300 \\\hline\end{array}$$
Company B
$$\begin{array} { | l | r | r | } \hline \text { Revenue } & & \$ 50,000 \\\hline \text { Cost of Goods Sold: } & & \\\hline \text { Beginning Merchandise Inventory } & \$ 4,000 & \\\hline \text { Purchases and Freight In } & 23,000 & \\\hline \text { Ending Merchandise Inventory } & \$ 5,500 & \\\hline \text { Cost of Goods Sold } & & 21,500 \\\hline \text { Gross Profit } & & \$ 28,500 \\\hline\end{array}$$
Which of the following statements is true?

• A) Company A is a merchandising company.
• B) Company B is a manufacturing company.
• C) Company A is a manufacturing company.
• D) Company A is a service company.

---

Definitions:

Proposal

A plan or suggestion put forward for consideration or discussion by others, typically involving a detailed and structured document.

Group Services

Describes services provided to a group of individuals to meet shared needs or goals, often in a therapeutic, educational, or support setting.

Suicides

The act of intentionally causing one's own death, often as a result of despair, mental health conditions, or other factors.

Group Contracts

Agreements created by and for members of a team to define norms, roles, and expectations for group work.