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Determine the following: 1. Net Profit/Loss before tax 2. Net Profit/Loss Ratio 3. Interest Coverage 4. Identify the reasons behind the bad performance of this
Determine the following:
1. Net Profit/Loss before tax
2. Net Profit/Loss Ratio
3. Interest Coverage
4. Identify the reasons behind the bad performance of this company.
Income Statement-December 31, 2014 to December 31, 2015 Operating Revenues and Expenses $1,000 Operating Revenues Sales 22,400 Returns 250 22,150 Total Operating Revenues Operating Expenses Cost of goods and services sold Labor 6,000 Materials 3,000 Indirect cost 6,000 900 Selling and promotion Depreciation 250 General and administrative 6,000 600 Lease payment Total Operating Expense 22,750 600 Total Operating Income Nonoperating Revenues and Expenses 30 Rents 200 Interest receipts 80 Interest payments Total nonoperating Income 150 -450 Net Income before Tax Income Taxes .450 Net Profit (loss) for 2012Step by Step Solution
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