Moderno Ltd is a family-owned company which sells household furniture. You are helping the company to produce a set of accounts for its first month of trading.

Over one month, the company has made the following transactions:

1. A 5-year 55,000 loan has been taken out with a high street bank.
2. The company purchased raw materials for 455,000 at the beginning of the month.
3. It paid rent of 2,800 for one month.
4. The electricity bill was 444 for one month.
5. It paid 3,678 in interest charges for one month on a 100,000 overdraft.
6. The company purchased a delivery van for 18,000.
7. Depreciation was 1,650 for one month on its production plant.
8. Direct labour costs totalled 69,000 for the month.
9. The company sold half its stock to John Lewis for 567,400 during the month.
10. The owner withdrew 6,000 in cash out of the business bank account.
11. During the month, it sold 128,100 of furniture to online retail store Loaf.
12. The value of its stock remaining unsold was 136,000 at month-end

(a) Consider the list above and choose the most relevant items to produce an Income Statement for his business for the month. Please use the table below for your answer (b) Showing all workings, from your income statement, calculate the operating profit margin for the month. Please state to TWO decimal places.

(c) Showing all workings, from your income statement, calculate the interest cover ratio for the month. Please state to TWO decimal places.

(d) In your own words, explain the difference between fixed and variable costs.