Noah's pet store is located at 1415 S. Patterson Blvd, Dayton, OH 45409. The name of the store is ‘‘The Arc,'' and its taxpayer identification number is 95-9876556. Since you handle Noah's bookkeeping, you have printed the income statement from your Quickbooks software, shown in the table below: The Arc
95-9876556
Income Statement
For the Year Ended December 31, 2019
Revenue:
Gross Sales $143,245.00
Less: Sales Returns and Allowances 0.00
Net Sales $143,245.00
Cost of Goods Sold:
Beginning Inventory$10,204.00
Add: Purchases62,111.00
$72,315.00
Less: Ending Inventory9,987.00
Cost of Goods Sold 62,328.00
Gross Profit (Loss) $80,917.00
Expenses:
Dues and Subscriptions$0.00
Estimated Federal Tax Payments8,000.00
Estimated State Tax Payments4,000.00
Insurance780.00
Meals and Entertainment1,338.00
Miscellaneous0.00
Payroll Taxes3,840.00
Professional Fees1,700.00
Rent8,400.00
Travel1,231.00
Utilities1,254.00
Vehicle Expenses0.00
Wages25,113.00
Total Expenses 55,656.00
Net Operating Income $25,261.00

Detail of The Arc's meals and entertainment:

$400Meals associated with business travel
60Overtime meals for employees
878Sports tickets for entertaining large customers
$1,338