The Income Statement provides a summary of revenues and expenses over a period of time, such as a month, quarter, or year. It provides information about the profitability of a business during the period specified. 1. The following is a cash basis income statement for Sample Cafe's first month of operation. Calculate the total expenses and net income for the business. Item Revenue Equipment Rent and Utilities Sample Cafe Income Statement, Cash Basis Month Ended January 31, 20xx Value Note $40,000 Excludes $2,200 in receipts not yet purchased $0 Purchased last month for $12,000 (5-year life) $4,500 Includes $2,500 in rent and utility deposits $2,300 Includes $100 worth thrown away $1,600 $700 still in inventory $14,800 Owe $2,400 in taxes $12,000 Paid mid-month $12,000 $3,000 each week Coffee Purchased Cups Purchased Payroll Interest on Loan Advertising/Promotion Total Expenses Net Income The Income Statement provides a summary of revenues and expenses over a period of time, such as a month, quarter, or year. It provides information about the profitability of a business during the period specified. 1. The following is a cash basis income statement for Sample Cafe's first month of operation. Calculate the total expenses and net income for the business. Item Revenue Equipment Rent and Utilities Sample Cafe Income Statement, Cash Basis Month Ended January 31, 20xx Value Note $40,000 Excludes $2,200 in receipts not yet purchased $0 Purchased last month for $12,000 (5-year life) $4,500 Includes $2,500 in rent and utility deposits $2,300 Includes $100 worth thrown away $1,600 $700 still in inventory $14,800 Owe $2,400 in taxes $12,000 Paid mid-month $12,000 $3,000 each week Coffee Purchased Cups Purchased Payroll Interest on Loan Advertising/Promotion Total Expenses Net Income