XYZ corporation’s beginning assets were 350000, during the month of January they purchased assets worth 150000. At the end of the month, total assets in hand were 300000. (we assume that all the assets were inventory and were purchased to be sold to customers). Company’s financial analysis suggest that total sales in this month were 440000. During this month company’s operating expenses were as follows;
Salaries 20000
Utility Bills 10000
Transportation 15000
Further company paid 1500 in taxes and 6600 in interest expenses.
Required: Prepare income statement for the company. Find Gross profit margin, operating profit margin and Net income.

Answer rating: 100% (QA)

Question a XYZ Income statement for the month of January Question b Gross pr... View the full answer