Analyzing Revenues and Expenses and Preparing a Statement of Earnings LO1-1 Assume that you are the owner of The University Shop, which specializes in items that interest students. At the end of September 2021, you find (for September only) the following:

a. Sales, per the cash register tapes, of $119,000, plus one sale on credit (a special situation) of $1,000.

b. With the help of a friend (who majored in accounting), you determined that all of the goods sold during September had cost $40,000 to purchase.

c. During the month, according to the chequebook, you paid $38,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $600 monthly utilities for September.

Required:

1. On the basis of the data given, what was the amount of net earnings for September (disregard income taxes)? Show computations. (Hint: A convenient form to use has the following major side captions: revenue from sales, expenses, and the difference—net earnings for the period.)
2. Of what use is this information if you, as a manager, are deciding whether to purchase a new cash register at a cash cost of $2,500?