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Need all answer. TQ QUESTION 1 (24 marks) BusyBiz Company's sells childrens' clothing. The company's financial year is from January 1 through December 31. In
Need all answer. TQ
QUESTION 1 (24 marks) BusyBiz Company's sells childrens' clothing. The company's financial year is from January 1 through December 31. In 2019, the company recorded total net sales revenue of RM1,550,000 and sales returns and allowances of RM150 compared to RM400 in 2018. BusyBiz spent RM320,000 on materials and RM380,430 on labour costs, and operating expenses (excluding depreciation and interest) were RM295,000. During the year, depreciation expense estimated was RM100,000 and the company had RM800,000 in total debt at an annual interest rate of 8%. The company's tax rate was 35 % and gross profit margin ratio of 40%. (a) Given this information, prepare the income statement for the company (following the format shown in the class). You are required to show the following items in your income statement: (i) Total sales cost of goods sold (details) (iii) Gross margin (iv) operating income before interest and depreciation Tax expense (v) (vi) Net income after tax [18 Marks] [Your answer here) (b) Calculate the Net Profit margin ratio and interpret your answer. [3 Marks] [Your answer here] (C) If the company paid total dividend of RM24,000, calculate the amount of earnings retained in 2019. [3 Marks] [Your answer here]Step by Step Solution
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