Green Acres is a full-service lawn service. In addition to mowing, Green Acres provides a full array

Question:

Green Acres is a full-service lawn service. In addition to mowing, Green Acres provides a full array of seeding, aerating, and fertilizing services. The service has recently expanded to include pruning and related care of shrubs and trees. During the fall season, the service also rakes lawns, and does miscellaneous cleanup. Noticing that his trucks and rider mowers are idle during winter, Shawn, the owner, is contemplating whether to expand the service to include snow removal.
The following data pertain to operations for the most recent year.
Revenues from lawn mowing ....... $525,200
Revenue from fertilizing services ...... $640,000
Miscellaneous revenue ........... $76,450
Beginning inventory of fertilizer and supplies .. $34,350
Purchases of fertilizer & supplies ...... $395,400
of fertilizer and supplies ... $29,460
Depreciation of lawn mowing equipment .... $45,000
Equipment repair and maintenance ........ $78,000
Fuel and other costs ............. $54,000
Crew salaries ............... $285,600
Office rent ................. $82,000
Advertising ............... $128,000
Accounting and payroll ........... $45,000
Depreciation of Shawn’s personal truck ..... $4,000

Required:
Prepare a income statement. What detail would help increase the value of this statement?

Ending Inventory
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