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Company A Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Total Income Interest Income 7.60 9.92 9.61 27.13 Sales 780.00 593.00

Company A

Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Total
Income
Interest Income 7.60 9.92 9.61 27.13
Sales 780.00 593.00 2,123.00 1,543.00 5,039.00
Sales of Product Income 362.00 362.00
Square Sales 17,520.72 12,962.08 17,968.85 16,492.95 20,872.96 21,515.04 107,332.60
Total Income $ 17,520.72 $ 13,742.08 $ 18,338.45 $ 17,095.87 $ 23,005.57 $ 23,058.04 $ 112,760.73
Cost of Goods Sold
Cost of Goods Sold 13,830.09 7,854.55 12,850.45 4,452.86 6,968.95 3,647.62 49,604.52
Merchant Fees 2.09 2.09
Shipping 110.17 1.60 38.56 42.29 36.16 77.32 306.10
Total Cost of Goods Sold $ 13,940.26 $ 7,858.24 $ 12,889.01 $ 4,495.15 $ 7,005.11 $ 3,724.94 $ 49,912.71
Gross Profit $ 3,580.46 $ 5,883.84 $ 5,449.44 $ 12,600.72 $ 16,000.46 $ 19,333.10 $ 62,848.02
Expenses
Advertising & Marketing 305.94 731.44 682.19 682.19 722.10 763.19 3,887.05
Ask My Accountant 2,433.65 2,433.65
Car & Truck 397.10 44.49 441.59
Contractors 100.00 100.00 200.00
Dues & Subscriptions 12.99 300.99 101.25 12.99 41.10 469.32
Equipment Rental 59.00 193.25 252.25
Event Fees 545.00 545.00
Insurance 138.28 605.00 11.00 754.28
Interest Paid 508.47 264.54 284.86 360.86 343.06 358.67 2,120.46
Job Supplies 185.84 32.20 53.10 15.21 45.99 201.77 534.11
Legal & Professional Services 750.00 750.00 750.00 843.74 500.00 500.00 4,093.74
Meals & Entertainment 112.84 25.25 10.77 191.36 340.22
Office Supplies & Software 70.14 447.24 5.60 522.98
Parking 18.95 18.95
Payroll Expenses 104.20 461.17 70.00 70.00 64.00 769.37
Unemployment 327.28 41.44 368.72
Wages 3,280.29 3,636.94 3,723.08 5,230.91 4,658.85 7,425.65 27,955.72
Total Payroll Expenses $ 3,607.57 $ 3,741.14 $ 4,184.25 $ 5,300.91 $ 4,728.85 $ 7,531.09 $ 29,093.81
Postage & Shipping 2.50 28.84 31.34
Rent & Lease 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 13,800.00
Repairs & Maintenance 30.00 30.00 30.00 30.00 60.00 180.00
Taxes & Licenses 600.02 600.02
Travel 1,902.96 400.00 -345.00 163.19 2,121.15
Utilities 612.34 1,177.43 973.12 845.98 457.60 636.97 4,703.44
Total Expenses $ 11,383.22 $ 10,698.01 $ 9,824.11 $ 10,590.91 $ 9,209.43 $ 15,437.68 $ 67,143.36
Net Operating Income -$ 7,802.76 -$ 4,814.17 -$ 4,374.67 $ 2,009.81 $ 6,791.03 $ 3,895.42 -$ 4,295.34
Net Income -$ 7,802.76 -$ 4,814.17 -$ 4,374.67 $ 2,009.81 $ 6,791.03 $ 3,895.42 -$ 4,295.34

Company B

Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Total
Income
Sales 9,161.91 11,806.67 12,932.09 7,692.72 10,487.23 8,513.32 60,593.94
Total Income $ 9,161.91 $ 11,806.67 $ 12,932.09 $ 7,692.72 $ 10,487.23 $ 8,513.32 $ 60,593.94
Cost of Goods Sold
Cost of goods sold 10,795.62 2,577.77 4,275.75 3,612.77 670.20 524.70 22,456.81
Coffee! 1,855.20 1,588.85 392.90 3,836.95
Event Fees 60.00 60.00
Total Cost of goods sold $ 12,650.82 $ 4,166.62 $ 4,728.65 $ 3,612.77 $ 670.20 $ 524.70 $ 26,353.76
Square expense 1,257.84 925.37 2,183.21
Total Cost of Goods Sold $ 13,908.66 $ 5,091.99 $ 4,728.65 $ 3,612.77 $ 670.20 $ 524.70 $ 28,536.97
Gross Profit -$ 4,746.75 $ 6,714.68 $ 8,203.44 $ 4,079.95 $ 9,817.03 $ 7,988.62 $ 32,056.97
Expenses
Accounting services 600.00 600.00 600.00 1,800.00
Advertising 6.38 12.08 47.75 12.75 57.70 12.75 149.41
Ask Accountant 500.00 -891.09 -391.09
Business licenses 18.00 30.00 48.00
Insurance 858.00 858.00
Interest Expense 0.02 0.02
Office expenses 145.02 89.75 365.97 90.48 691.22
Payroll expenses 653.30 1,331.79 475.23 2,460.32
Payroll taxes 90.09 26.46 34.91 151.46
Rent 925.00 900.00 900.00 900.00 900.00 900.00 5,425.00
Repair & Maintenance 5.99 315.93 14.10 43.80 379.82
Shipping and delivery expense 122.05 128.66 309.82 844.12 1,404.65
Software & subscriptions 194.00 194.00 194.00 208.99 162.00 162.00 1,114.99
Subcontractor 95.00 95.00 190.00
Supplies & Materials 197.99 -97.97 144.92 513.22 30.88 789.04
Taxes 203.82 677.72 349.94 341.52 483.60 438.84 2,495.44
Utilities 116.96 115.79 104.77 107.97 104.22 101.29 651.00
Total Expenses $ 2,702.32 $ 3,615.72 $ 4,510.97 $ 4,305.60 $ 2,328.00 $ 754.67 $ 18,217.28
Net Operating Income -$ 7,449.07 $ 3,098.96 $ 3,692.47 -$ 225.65 $ 7,489.03 $ 7,233.95 $ 13,839.69
Other Income
Credit Card Rewards 119.97 197.35 65.64 382.96
Total Other Income $ 119.97 $ 197.35 $ 65.64 $ 382.96
Other Expenses
Municipal Trash Bags 400.00 200.00 600.00
Total Other Expenses $ 400.00 $ 200.00 $ 600.00
Net Other Income $ 0.00 -$ 280.03 -$ 2.65 $ 65.64 $ 0.00 $ 0.00 -$ 217.04
Net Income -$ 7,449.07 $ 2,818.93 $ 3,689.82 -$ 160.01 $ 7,489.03 $ 7,233.95 $ 13,622.65

For some background, Company A is in X city, and Company B is in a smaller city. These are both retail locations that sell the same type of items. Here are six possible questions to guide your analysis:

  • Calculate the gross profit margins for both companies. How do they vary, and what factors may contribute to these differences?
  • Examine the net income figures for each company. Can you identify any patterns or trends?

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