In addition to preparing the balance sheet described in Lone Pine Cafe (A), Mr. Simpson, the accountant, agreed to prepare an income statement. He said' that such a financial statement would show Mrs. Antoine how profitable operations had been, and thus help her to judge whether it was worthwhile to continue operating the restaurant.
In addition to the information given in the (A) case, Mr. Simpson learned that cash received from customers through March 30 amounted to $43,480 and that cash payments were as follows:

1. Prepare an income statement for the period of the cafe's operations through March 30, 2010.
2. What does this income statement tell Mrs. Antoine?

Monthly payments to partners Wages to part-time employees Interest Food and beverage suppliers Telephone and electricity Miscellaneous Rent payments $23,150 5,480 540 10,016 3,270 255 7,500 "One-third to esch partner