Chapter 9, Problem 5BTN

1.

Summary Introduction

Introduction: Income statement is a statement showing the incomes and expenses of a firm and arriving at a profit after deducting all the expenses from the income.

To prepare: An income statement.

2.

Summary Introduction

Introduction: Times interest earned is the measure that calculates how much a company is earning in the ratio of interest expense.

To compute: Company’s Times interest earned under the expansion

3.

Summary Introduction

Introduction: Income statement of a company is the statement showing all the incomes, expenses and profits/losses of the company and it is prepared to see the operations of the company clearly.

To prepare: Income statement of the company.

4.

Summary Introduction

Introduction: Income statement shows the profit and loss of an accounting period by deducting all the expenses of that period from the revenues of that period. This statement helps in analyzing the growth of the company by evaluating the profit or loss at the end of the financial year.

To prepare: Income statement of the company.

5.

Summary Introduction

Introduction: Interest expense is the consideration paid for the amount borrowed by the firm. It is paid on fixed percentage for the time period of loan.

To comment: On the result calculated above.