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.

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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