Veekay Company was organized on November 1 of the previous year.
After seven months of start-up losses, management had expected to
earn a profit during June, the most recent month. Management was
disappointed, however, when the income statement for June also
showed a loss. June’s income statement follows.
Sales
$660,000
Less operating expenses
Selling and administrative
salaries
$ 39,000
Rent on
facilities
40,000
Purchases of raw materials
219,000
Insurance
10,000
Depreciation, sales
equipment
11,000
Utilities...