You receive the following income statement for the first 3 months of the year. Explain in marketing terms any positives or negatives that you garner from this income statement.

Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 24CC
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You receive the following income statement
for the first 3 months of the year. Explain in
marketing terms any positives or negatives
that you garner from this income statement.
Wendy's Wholesale Income Statement
January 1- March 31
Revenue (Sales)
Stock at March 31
Purchases
55,000
34,000
12,000
46,000
(20,000)
SUB TOTAL
Less Stock at January 1
Costs to deduct from Revenue
(26,000)
29,000
GROSS PROFIT
Less Overheads:
8,000
1,500
Wages
Rent
Electricity
Insurance
700
500
Distribution
Other Expenses
Reserve for Bad Debts
800
1,800
2,750
200
Depreciation
Less Total Overheads
(16,250)
NET PROFIT Before Tax
12,750
Transcribed Image Text:You receive the following income statement for the first 3 months of the year. Explain in marketing terms any positives or negatives that you garner from this income statement. Wendy's Wholesale Income Statement January 1- March 31 Revenue (Sales) Stock at March 31 Purchases 55,000 34,000 12,000 46,000 (20,000) SUB TOTAL Less Stock at January 1 Costs to deduct from Revenue (26,000) 29,000 GROSS PROFIT Less Overheads: 8,000 1,500 Wages Rent Electricity Insurance 700 500 Distribution Other Expenses Reserve for Bad Debts 800 1,800 2,750 200 Depreciation Less Total Overheads (16,250) NET PROFIT Before Tax 12,750
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