Answer:
The Forest Ltd.
The revenue for June was:
$21,585.
Explanation:
a) Data:
Cash receipt from customers for May = $5,000
Invoice for June services rendered = $21,585
Beginning inventory of trees = $1,000
Purchases of trees = $4,000
Ending inventory of trees = $500
Cost of trees planted = $4,500
Office rent expense = $1,000
Miscellaneous expenses = $3,000
Depreciation on truck and office equipment = $500
Income tax rate = 10%
Revenue for June = $21,585
b) The revenue of Forest Ltd. for the month of June can be calculated as the number of trees replanted multiplied by the average price of replanting services provided. Assuming that cost of the trees replanted and other expenses incurred are subtracted from the company's revenue, then one arrives at the income before tax. After the deduction of the tax expense for the month, the resulting balance is called the net income or loss.
