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QUESTION 2: income statement 35 marks You have been provided with the following account balances for Fama Ltd. for the year ended December 31,
QUESTION 2: income statement 35 marks You have been provided with the following account balances for Fama Ltd. for the year ended December 31, 2023 Advertising expense Cost of goods sold General and administrative expenses Income tax expense 2023 SASA $ 155 000 $ 882 000 EA $ EA $ 56 000 41 000 Required: Interest revenue Rent expense Sales revenue Utilities expense Wages expense SASSASASA $ $ $ $ 2 600 18 000 1 575 000 44 000 252 000 1. Prepare a multi-step, statement of income for Fama for 2023. 2. Determine Fama's gross margin percentage for 2023, Assume gross margin percentage was 40% for 2022. Discuss this change and provide some potential origins of this change.
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