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Examine the income statement for STU Enterprises for the fiscal year ending December 31, 2023, focusing on net income and comprehensive income components. STU Enterprises
Examine the income statement for STU Enterprises for the fiscal year ending December 31, 2023, focusing on net income and comprehensive income components.
STU Enterprises Income Statement | Year Ended December 31, 2023 |
---|---|
Revenue | |
Product Sales | $750,000 |
Service Revenue | $50,000 |
Total Revenue | $800,000 |
Expenses | |
Cost of Goods Sold | $350,000 |
Operating Expenses | $250,000 |
Depreciation Expense | $20,000 |
Interest Expense | $10,000 |
Income Tax Expense | $50,000 |
Total Expenses | $680,000 |
Net Income | $120,000 |
Other Comprehensive Income | $15,000 |
Comprehensive Income | $135,000 |
Questions:
- Calculate the net income margin and discuss its relevance in assessing the company’s profitability.
- Analyze the components of comprehensive income and explain their significance in providing a complete picture of financial performance.
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