Al Mawarid Construction Equipment LLChas provided following Income Statementfor the year ending 31st Mar 2020:ParticularsAmountSales180,000Less: Cost of Goods Sold-90,000Gross Profit90,000Less: Operating Expenses-55,000Operating Profits (EBIT)35,000Less: Financial Charges-15,000(Interest Paid)Profit Before Tax20,000Less: Taxes-3,000Profit After Tax (Net Profit forthe Year)17,000Calculate Gross Profit Ratio and OperatingProfit Ratio from the above IncomeStatement.

The gross profit ratio can be calculated as gross profit divided by total sales The operating…

Answered: Al Mawarid Construction Equipment LLC…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A company sells 180,000 (sale price) of goods and collect sales tax of 8%. What current liability does the sale create?
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