Assume that you are the owner of The University Shop, which specializes in items that interest students. At the end of September 2018, you find (for September only) the following:
a. Sales, per the cash register tapes, of $119,000, plus one sale on credit (a special situation) of $1,000.
b. With the help of a friend (who majored in accounting), you determined that all of the goods sold during September had cost $40,000 to purchase.
c. During the month, according to the cheque book, you paid $38,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $600 monthly utilities for September.

Required:
1. On the basis of the data given, what was the amount of net earnings for September (disregard income taxes)? Show computations.

2. As a manager of what use is this information if you are deciding whether or not to purchase a new cash register at a cash cost of $2,500?