Based on the information provided, you are required to :

1.Prepare an Income Statement for the year ending December 31;

2..Calculate the Net Profit Margin; and

3.Briefly explain what the profit margin means for Equilibrium Riding, Inc.

MB-21 Preparhg Finandal Statements from a Mrlal Balance The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horscback riding lessons, as of December 31