MARILYN JOHNSON ATTORNEY AT LAW INCOME STATEMENT FOR MONTH ENDING JANUARY 31, 2020 Revenue $50,000 Legal Fees Earned Expenses Salary Attorney Accountant Paralegal Administrative Assistant 5,000 5,000 2,000 1,500 3,000 5,000 Rent Utilities Telephone and Internet Malpractice Insurance Health Benefits (4 People) 2,000 3,500 5,500 Total Expenses 33,000 Net Income 17,000 Ms. Marilyn Johnson is an attorney who has her own practice located in the South specializes in immigration, divorce, and accidents. There are a number of attorneys Bronx County courthouse. Ms. Marilyn Johnson is an attorney who has her own practice located in the South Bronx on 163 Street and Morris Avenue. She specializes in immigration, divorce, and accidents. There are a number of attorneys practicing in the area because of the proximity to the Bronx County courthouse. Ms. Johnson speaks Spanish as well as Creole and French. Even though her fees are low because her clients are mostly immigrants, she makes up the difference in the number of clients she has because of her fluency in languages. Ms. Johnson has a staff of one paralegal, an accountant, and one administrative assistant who manages the day-to-day operations of the office. She has two interns from the paralegal program at Hostos, one intern from the office technology program, and an intern from the accounting program who are also Hostos students. The interns are unpaid. However, they receive college credit for their work. The paid employees receive their salaries every two weeks, which means they receive 26 checks for the year In your own words based on the income statement that is above, please explain the purpose and function of the income statement 2. According to the statement, is Ms. Johnson's income higher than her expenses, is her income lower than her expenses; or is her Income equal to her expenses? Please explain your answer with examples from the income statement Calculate her net income to prove your answer Calculate the percentage share of each type of expense in total expenses (The share of salary expense, the share of rent expense and the share of utilities expense). Which expense has the highest share? 4 What is the profit margin and profit markup for Ms. Johnson? 5. Are there any expenses that she can eliminate so that her income could be higher and her expenses lower? If so, which expenses can she eliminate and how can she eliminate them? Use examples from the income statement 6. Ms. Johnson has hired you as a consultant to help her increase her revenue. What questions would you ask her based on the Income statement and business summary that she has provided? What recommendations would you make and why? 7. Suppose you know Mr. Bonilla, another attorney, whose profit margin is 20 percent. Would you be able to say who is more profitable, Ms. Johnson or Mr. Bonilla? Why or Why not? Please give examples