Three individuals organized Pest B-Gone Professionals on January 1 to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of the first year of operations, the following income statement was prepared: 

Required: 

1. What was the amount of average monthly revenue? 

2. What was the average amount of monthly salaries and wages expense? 

3. Explain why advertising is reported as an expense. 

4. Explain why the dividends are not reported as an expense. 

5. Can you determine how much cash the company had on December 31? Answer yes or no, and explain your reasoning.

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PEST B-GONE PROFESSIONALS Income Statement For the Year Ended December 31 Revenues Service Revenue $192,000 Sales Revenue 24,000 Total Revenues $216,000 Еxpenses Supplies Expense $ 76,000 Salaries and Wages Expense 33,000 Advertising Expense 22,000 Other Expenses 46,000 Total Expenses 177.000 Net Income $ 39,000