Pest Away Corporation was organized by three individuals on January 1, 2017, to provide insect extermination services. At the end of 2017, the following statement of earnings was prepared

Required

1.?What was the average amount of?monthly?revenue?2. What was the amount of monthly rent?3.?Explain?why?supplies?are reported as an?expense.4. Explain?why interest?is?reported?as an?expense.5. What was the average income tax rate for Pest Away Corporation?6. What does the amount of total revenues mean to an external decision maker?7. Can you determine how much cash the company had on December 31, 2017? Explain.

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PEST AWAY CORPORATION Statement of Earnings For the Year Ended December 31, 2017 Revenues Service revenue (cash) $192,000 Service revenue (credit) 24,000 Total revenues $216,000 Expenses $ 76,000 Salaries 21,000 Rent Utilities 12,000 Advertising 14,000 Supplies 25,000 8,000 Interest Total expenses 156,000 Earnings before income tax 60,000 Income tax expense 21,000 $ 39,000 Net earnings for the year