INCOME STAEMENT Particulars Amount ($) Sales 200000 Cost of Goods Sold -95000 Gross Profit 105000 Utility -20000 Advertisement expense -1000 Administration expense -2000 Earning Before Interest and Tax (EBIT) 82000 Interest -10,000 Earning Before Tax (EBT) 72,000 Таx -5000 Earning After Tax (EAT) 67,000 Note :- The cost of raw material is already included in cost of goods sold. So, it has not been mentioned separetely in the income statement.
INCOME STAEMENT Particulars Amount ($) Sales 200000 Cost of Goods Sold -95000 Gross Profit 105000 Utility -20000 Advertisement expense -1000 Administration expense -2000 Earning Before Interest and Tax (EBIT) 82000 Interest -10,000 Earning Before Tax (EBT) 72,000 Таx -5000 Earning After Tax (EAT) 67,000 Note :- The cost of raw material is already included in cost of goods sold. So, it has not been mentioned separetely in the income statement.
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
Related questions
Question
Based on the income statement given calculate and explain the :
profitability ratio
a. Gross profit ratio = gross profit/net sales
b. Operating margin ratio =operating income/net sales
c. Asset Turnover ratio = net sales / total assets
d.
Leverage ratio
a. interest coverage ratio =operating income / interest expenses
b. Debt service ratio=operating income/debt service
Transcribed Image Text:INCOME STAEMENT
Particulars
Amount ($)
Sales
200000
Cost of Goods Sold
-95000
Gross Profit
105000
Utility
-20000
Advertisement expense
-1000
Administration expense
-2000
Earning Before Interest and Tax (EBIT)
82000
Interest
-10,000
Earning Before Tax (EBT)
72,000
Тах
-5000
Earning After Tax (EAT)
67,000
Note :- The cost of raw material is already included
in cost of goods sold. So, it has not been mentioned
separetely in the income statement.
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