b) From the following income statement, prepare the common-sized income statement for Teguh Corporation. Interpret your...

 

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b) From the following income statement, prepare the common-sized income statement for Teguh Corporation. Interpret your results. Teguh Corporation Income Statement for the Year Ending December 31, 2020 2020 (RM) Sales (all credit) Cost of goods sold Gross profit Operating expenses Variable operating expenses Fixed cash operating expenses Depreciation expenses Total operating expenses Earning before interest and taxes Interest expenses Earning before taxes Income taxes Net income 480,000 288,000 192,000 48,000 63,000 30,000 141,000 51,000 18,300 32,700 11,700 21,000 b) From the following income statement, prepare the common-sized income statement for Teguh Corporation. Interpret your results. Teguh Corporation Income Statement for the Year Ending December 31, 2020 2020 (RM) Sales (all credit) Cost of goods sold Gross profit Operating expenses Variable operating expenses Fixed cash operating expenses Depreciation expenses Total operating expenses Earning before interest and taxes Interest expenses Earning before taxes Income taxes Net income 480,000 288,000 192,000 48,000 63,000 30,000 141,000 51,000 18,300 32,700 11,700 21,000

Answer rating: 100% (QA)

To prepare the commonsized income statement for Teguh Corporation we need to express each line item as a percentage of net sales This allows us to com... View the full answer