Question: Digital Dynamics Inc. has provided the following data for its first three months of operations: Month Sales Revenue () Purchases () Operating Expenses () Closing
Digital Dynamics Inc. has provided the following data for its first three months of operations:
Month | Sales Revenue (£) | Purchases (£) | Operating Expenses (£) | Closing Inventory (£) |
Jan | 100,000 | 70,000 | 30,000 | 15,000 |
Feb | 110,000 | 75,000 | 35,000 | 18,000 |
Mar | 120,000 | 80,000 | 40,000 | 20,000 |
Requirements:
- Calculate the Cost of Goods Sold (COGS) for each month.
- Determine the Gross Profit for each month.
- Prepare a quarterly income statement for the three months ended 31 March.
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