In 2017, Orasco Company SA had net sales of R$600,000 and cost of goods sold of R$360,000.

Question:

In 2017, Orasco Company SA had net sales of R$600,000 and cost of goods sold of R$360,000. Operating expenses were R$153,000, and interest expense was R$7,500. The corporation's tax rate is 25%. The declared preference dividends of R$12,000 in 2017, and its average ordinary shareholders' equity during the year was R$180,000.
Instructions
(a) Prepare an income statement for Orasco Company SA.
(b) Compute Orasco's return on ordinary shareholders' equity for 2017.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...