Question
Custodian Commandos, Inc., provides janitorial services to public school systems. The busi- ness adjusts its accounts monthly, but closes them only at year-end. Its fiscal
Custodian Commandos, Inc., provides janitorial services to public school systems. The busi- ness adjusts its accounts monthly, but closes them only at year-end. Its fiscal year ends on December 31.
A summary of the companys total revenue and expenses at the end of five selected months is as follows:
Total Revenue
March 31 $ 69,000
June 30 $129,000
August 31 $134,000
September 30 $159,000
December 31 $249,000
Total Expenses
March 31 $ 48,000
June 30 $90,000
August 31 $115,000
September 30 $130,000
December 31 $175,000
a. Rank the companys fiscal quarters from most profitable to least profitable.
b. Compute the companys income for the month of September.
c. Compute the companys net income (or loss) for the first two months of the third quarter. Provide a possible explanation why profitability for the first two months of the third quarter differs significantly from profitability achieved in the third month of the quarter (as computed in part b ).
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The Essential Handbook Of Internal Auditing
Authors: K. H. Spencer Pickett
1st Edition
0470013168, 978-0470013168
