Home and Away Inspections Income Statement For Month Ended September 30, 20-- Revenues: Inspection fees $5,000 Expenses: \begin{tabular}{lr} Wages expense & 450 \\ Rent expense & 300 \\ Utilities expense & 50 \\ Phone expense & 35 \\ \hline \end{tabular} 835$4,165 Required: Take another look at the Demonstration Problem for Kenny Young's "Home and Away Inspections." Kenny Young has started his own business, Home and Away Inspections. He inspects property for buyers and sellers of real estate. Young rents office space and has a part-time assistant to answer the phone and help with inspections. The transactions for the month of September and income statement for the month are shown. a. On the first day of the month, Young invested cash by making a deposit in a bank account for the business, $15,000. b. Paid rent for September, $300. c. Bought a used truck for cash, $8,000. d. Purchased tools on account from Crafty Tools, $3,000. e. Paid electricity bill, $50. f. Paid two-year premium for liability insurance on truck, $600. g. Received cash from clients for services performed, $2,000. h. Paid part-time assistant (wages) for first half of month, $200. i. Performed inspection services for clients on account, $1,000. j. Paid phone bill, $35. k. Bought office supplies costing $300. Paid $100 cash and will pay the balance next month, $200. I. Received cash from clients for inspections performed on account in (i), $300. m. Paid part-time assistant (wages) for last half of month, $250. n. Made partial payment on tools bought in (d), $1,000. o. Earned additional revenues amounting to $2,000 : $1,400 in cash and $600 on account. p. Young withdrew cash at the end of the month for personal expenses, $500. Note that when revenues are measured based on the amount earned, and expenses are measured based on the amount incurred, as shown in the income statement, net income for the period was $4,165. Compare the income statement to the cash receipts and payments schedule. Are these measures different? Which of the following provides a better measure of profitability