The Relationship between Profit and Value Created Marty and Judi own and operate Tender Sender Company, a store providing private mail boxes, contract shipping services on commission, and a wide variety of gift and novelty items. The following transactions occurred during the month of February.
1. Sold $6,000 of gift items for which the company had paid $3,100.
2. Advertising, both newspaper and radio, was $1,500.
3. Rent for the month received from mail box customers totaled $1,640.
4. The cost of monthly rent for the store location was $2,200.
5. The cost of utilities for the month was $475.
6. Commissions earned from shipping services for the month totaled $1,588.
7. Sold $3,200 of novelty items that had cost the company $1,450.
8. The cost of supplies used during the month was $384.
9. Other miscellaneous costs for the month of February totaled $250.
Required
A. Prepare a schedule that shows the amount of profit earned by the company during the month of February.
B. Has the company created value? Explain your answer.