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 for Equilibrium Riding, Inc.

M3-21 Preparing Financlal Statements from a Trial Balance The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31