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 Prepare an income statement for company AKM for 31 December 2021. Based on the income statement calculate and explain the profitability ratio and 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 Prepare an income statement for company AKM for 31 December 2021. Based on the income statement calculate and explain the profitability ratio and leverage ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- 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
- Prepare an income statement for company AKM for 31 December 2021.
- Based on the income statement calculate and explain the profitability ratio and leverage ratio.
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