Sales $200,000Interest expenses $10,000Tax $5,000Administration expenses $2,000Advertisement expenses $1,000Cost of goods sold (COGS) $95,000Utility $20,000Raw material $30,000Prepare an income statement for company M for 31 December 2021.Based on the income statement calculate and explain the profitability ratio and leverage ratio.

As posted multiple independent questions we are answering only first question kindly repost the…

Answered: Sales $200,000 Interest expenses…

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 24CE

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Question

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 M for 31 December 2021.
Based on the income statement calculate and explain the profitability ratio and leverage ratio.

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