Management and Organizational Studies 3199Y Lecture Notes - Lecture 9: Income Statement, Earnings Before Interest And Taxes, Liquid Oxygen

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3199Y
• Professor: hawn

Document Summary

Problem 2-22 schedule of cost of goods manufactured; income statement [lo1, lo2, lo3, lo4] Veekay company was organized on november 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during june, the most recent month. Management was disappointed, however, when the income statement for june also showed a loss. After seeing the ,000 loss for june, veekay"s president stated, i was sure we"d be profitable within six months, but after eight months we"re still spilling red ink. Maybe it"s time for us to throw in the towel. To make matters worse, i just heard that debbie won"t be back from her surgery for at least six more weeks. Debbie is the company"s controller; in her absence, the statement above was prepared by a new assistant who has had little experience in manufacturing operations.