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On June 1,Royal Corp.began operating a service company with an initial cash investment by shareholders of $2,000,000.The company provided $6,400,000 of services in June and received full payment in July.Royal also incurred expenses of $3,000,000 in June that were paid in August.During June,Royal paid its shareholders cash dividends of $1,000,000.What was the company's income before income taxes for the two months ended July 31 under the following methods of accounting?
Aggregation
The process of combining multiple pieces of data, inventory, or information into a single group or total, often for analysis or planning purposes.
Safety Inventory
Additional stock kept in reserve to protect against uncertainties in demand or supply, ensuring product availability.
Safety Inventory
Extra inventory held to guard against uncertainty in the demand or supply chain, ensuring that shortages are minimized.
Demand Uncertainty
The lack of predictability in consumer demand for products or services, making inventory or production planning challenging.
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