This assignment is based on Textbook Exercise- M3 -21 (Equilibrium Riding, Inc.) p. 131.

Based on the information provided, you are required to :

Prepare an Income Statement for the year ending December 31;

Calculate the Net Profit Margin; and

Briefly explain what the profit margin means.

M3-21 Preparing Financial Statements from a Trial Balance The following accounts ane taken from Equilihrium Riding, Ine., a sompany that xpocializes in occupational therapy and horseback riding Jessons, as of Deoember 31. Requiredz Eaing the badjusted trial balanoe pemvidal, create n classified Ralanee Shos, Statenent of Herained Earnings, and Income Statement for Equilibrium Riding. Inc., for the year ended December 31. IThese TIP: Creale the Income Stalemmert iis. followed by the Stetemeti of Retamed Eamns, ard fimaly' tha elascified Relance 5 heer. Folkers the formese presented in Fxhiaits 13,14 , and 213