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PRINCIPLES OF FINANCIAL MANAGEMENT 1-Lecture-1201 - 4

Dashboard My courses PRINCIPLES OF FINANCIAL MANAGEMENT 1-Lecture-1201 - 4 Quizzes Short Quiz in Chapters 1 and 3

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Ahmad is The CEO of Mr.Pizza, who has just completed his first full year in business. During the year, Ahmad billed $420,000 for delivery services. Ahmad has a total of 11 employees (10 waiters and a chef). In addition to Ahmad's monthly salary of $5,000, Ahmad paid annual salaries of $12,100 and $10,000 to each of the waiters and the chef, respectively. Employment benefit-cost for Ahmad and his employees totaled $42,600 for the year. Mr.Pizza expenses, including office supplies, totaled $12,400 for the year. In addition, Ahmad spent $22,000 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the rented office space were $2,800 per month. Depreciation expense on the office furniture and delivery trucks was $16,300 for the year. During the year, Ahmad paid interest of $18,000 on the $150,000 borrowed to start the business. The company was subject to an average tax rate of 40% during 2019. Prepare an income statement for Mr. Pizza for the year ended December 31, 2019.