1. Preparing Financial statement

Based on the following information for AZRA corp., you need to prepare an (a)income statement for 2010 & 2011 and also balance sheet for 2010 and 2011. Use a 35% tax rate throughout.

	2010	2011
Sales	RM4,300	RM4,500
Cost of good sold	2,000	2,500
Depreciation	700	900
Interest	100	190
Dividends	200	250
Current Assets	2,205	2,429
Net fixed assets	7,344	7,650
Current liabilities	1,003	1,255
Long term debt	3,106	2,085

2. During 2007, R&R Corp. had sales of RM900,000. Cost of goods sold, administrative and selling expenses and depreciation expenses were RM620,000, RM120,000 and RM30,000, respectively. In addition, the company had an interest expense of RM5,000 and tax rate of 35%.

a) What is R&Rs net income for 2007?