Tony Ling is an analyst working to support the loans department at Tuned Bank. He is currently recasting his clients? financial statements so that they reflect income tax expense on a taxes payable basis before further analysis can be conducted on the financial statements. This is normal practice at Tuned Bank, and therefore Tony is very familiar with the process.Tony has hired an intern to assist with recasting financial statements, as he is overloaded with work but needs to walk his intern through an example before assigning the intern work. He has provided the intern with the condensed year-end financial statements for Medicare Corp. prepared in accordance with IFRS, shown below, and he will use this set of statements to explain to the intern what to do.Tony has also decided that, as part of the training materials he will provide to the intern, he will explain the purpose of recasting financial statements. He will also demonstrate calculation and interpretation of several key ratios that he will ask the intern to subsequently calculate and interpret for other companies. He will provide an explanation of what each ratio represents and their limitations. The ratios are: operating margin, return on total assets (after tax), and total debt to equity.Medicare Corp.?s tax rate is 30%.

Required:Adopt the role of Tony the analyst and prepare the relevant training material for his new intern.

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Sales revenue Cost of goods sold Gross profit Depreciation expense Interest expense Other expenses Earnings before income tax Income tax: Current Deferred MEDICARE CORP. Statement of Comprehensive Income Year ended 31 December 20X9 Net earnings and comprehensive income $660,000 360,000 300,000 72,000 12,000 96,000 120,000 14,400 21,600 36,000 84,000