Reference no: EM132618436

Consider the following monthly data for Bixel, Inc. for January through June:

Month                    Sales                     Expenses

January                $20,000                $15,000

February                $30,000              $20,000

March                    $40,000              $30,000

April                        $30,000              $20,000

May                         $50,000             $40,000

June                          $20,000          $15,000

Question 1: Assuming that the first quarter of 2003 includes the months of January, February and March, what would Bixel, Inc. report as revenue on its first quarter income statement? What would Bixel, Inc. report as expenses on its first quarter income statement? What would Bixel, Inc. report as profit (or loss) on its first quarter income statement?

Question 2: Assuming that the second quarter includes the months of April, May and June, what would Bixel, Inc. report as revenue on its second quarter income statement? What would Bixel, Inc. report as expenses on its second quarter income statement? What would Bixel, Inc. report as profit (loss) on its second quarter income statement?

Question 3: What would Bixel, Inc. report as profit (loss) on its income statement covering the period January through June?

Question 4: In 2003, Tanner, Inc. had gross sales of $1,253,400. The company's management reported a Returns and Allowances estimate of $53,400 in 2003. What did Tanner, Inc. report as Net sales in 2003?