Sales $200,000 Interest expenses $10,000 Tax $5,000 Administration expenses $2,000 Advertisement expenses $1,000 Cost of goods sold (COGS) $95,000 Utility $20,000 Raw material $30,000 1. Prepare an income statement for company M for 31 December 2021. 2. Based on the income statement calculate and explain the a. profitability ratio b. leverage ratio.

Sales $200,000 Interest expenses $10,000 Tax $5,000 Administration expenses $2,000 Advertisement expenses $1,000 Cost of goods sold (COGS) $95,000 Utility $20,000 Raw material $30,000 1. Prepare an income statement for company M for 31 December 2021. 2. Based on the income statement calculate and explain the a. profitability ratio b. leverage ratio.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject :- Accounting