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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 StatementYear 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:

  1. Calculate the net income margin and discuss its relevance in assessing the company’s profitability.
  2. Analyze the components of comprehensive income and explain their significance in providing a complete picture of financial performance.

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