Capital Ltd reported the following income statement for 2020 (in millions of dollars). The firms tax rate is 30%.

QUESTION 2 Capital Ltd reported the following income statement for 2020 (in millions of dollars). The firm's tax rate is 30%. Net Sales Cost of sales Administrative and selling expenses Goodwill impairment Interest expense Loss on sale of a machinery Interest income Income taxes Net income $12,500 (9,000) (1,120) (200) (36) (55) 8 (525) $1.572 Required: (a) Reformulate the income statement to distinguish operating items from financing items, and operating income from sale from other operating income. (8 marks) (b) If you have been asked to forecast the future profit margin based on the above information, what would your best estimate be? (3 marks) Attach File han QUESTION 2 Capital Ltd reported the following income statement for 2020 (in millions of dollars). The firm's tax rate is 30%. Net Sales Cost of sales Administrative and selling expenses Goodwill impairment Interest expense Loss on sale of a machinery Interest income Income taxes Net income $12,500 (9,000) (1,120) (200) (36) (55) 8 (525) $1.572 Required: (a) Reformulate the income statement to distinguish operating items from financing items, and operating income from sale from other operating income. (8 marks) (b) If you have been asked to forecast the future profit margin based on the above information, what would your best estimate be? (3 marks) Attach File han