Question

The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers. Bill’s collected $21,000 from customers for services related to games played in July. Bill’s billed a customer for $690 for a party held at the center on the last day of July. The bill is to be paid in August. The men’s and women’s bowling leagues gave Bill’s advance payments totaling $2,150 for the fall season that starts in September. Bill’s received $2,350 from credit sales made to customers last month (in June). Bill’s paid $1,950 to plumbers for repairing a broken pipe in the restrooms. Bill’s paid $3,300 for the June electricity bill and received the July bill for $4,000, which will be paid in August. Bill’s paid $5,620 to employees for work in July. Required: Prepare an income statement for Bill’s Extreme Bowling, Inc., for the month ended July 31. (This income statement would be considered “preliminary” because it uses unadjusted balances.) What is the company's net profit margin, expressed as a percent.

Answer 1