Q6. Based on the data below, A) prepare an income statement for Majdo Inc. for the year ended December 31, 3023. B). Use your results to find out: 1. Gross profit margin, 2. operating profit margin, 3. Net profit margin. C). Show the common - size income statement. D) find EPS E) What is wrong in the question? (5 marks) Total current liabilities = $3,050, 200 Current assets = $ 4,000,000 Retained earnings $500,000, Cost of goods sold $10,080,009 Marketing and advertising expenses $ 1,520,001 sales expenses $1,600,010 marketable securities $5,300, 600 Accumulated depreciation = $1,900, 200 Accounts receivable $ 1,250,000 Inventory $6,500, 00, Administrative expenses $1,288,000, Depreciation expenses $620, 200 preferred stocks = $ 1,000,000, Financing expenses $2,100, 100 Sales $21,080, 800 Taxes 17%, Note: number of outstanding shares = 2,000,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q6. Based on the data below, A) prepare an income statement for Majdo Inc. for the year ended December 31, 3023. B). Use your
results to find out: 1. Gross profit margin, 2. operating profit margin, 3. Net profit margin. C). Show the common - size income
statement. D) find EPS E) What is wrong in the question? (5 marks) Total current liabilities = $3,050, 200 Current assets = $
4,000,000 Retained earnings $500,000, Cost of goods sold $10,080,009 Marketing and advertising expenses $ 1,520,001 sales
expenses $1,600,010 marketable securities $5,300, 600 Accumulated depreciation = $1,900, 200 Accounts receivable $
1,250,000 Inventory $6,500, 00, Administrative expenses $1,288,000, Depreciation expenses $620, 200 preferred stocks = $
1,000,000, Financing expenses $2,100, 100 Sales $21,080, 800 Taxes 17%, Note: number of outstanding shares = 2,000,000
Transcribed Image Text:Q6. Based on the data below, A) prepare an income statement for Majdo Inc. for the year ended December 31, 3023. B). Use your results to find out: 1. Gross profit margin, 2. operating profit margin, 3. Net profit margin. C). Show the common - size income statement. D) find EPS E) What is wrong in the question? (5 marks) Total current liabilities = $3,050, 200 Current assets = $ 4,000,000 Retained earnings $500,000, Cost of goods sold $10,080,009 Marketing and advertising expenses $ 1,520,001 sales expenses $1,600,010 marketable securities $5,300, 600 Accumulated depreciation = $1,900, 200 Accounts receivable $ 1,250,000 Inventory $6,500, 00, Administrative expenses $1,288,000, Depreciation expenses $620, 200 preferred stocks = $ 1,000,000, Financing expenses $2,100, 100 Sales $21,080, 800 Taxes 17%, Note: number of outstanding shares = 2,000,000
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