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Sports International Ltd is in the business of manufacturing and selling sports equipment in the market. During the year ending December 31, 2021, the Company

Sports International Ltd is in the business of manufacturing and selling sports equipment in the market. During the year ending December 31, 2021, the Company generated revenue of $150,000 by selling the different types of equipment manufactured by it. The costs of goods sold in the material used was $ 40,000 during the year. The expenses incurred by the company during the year include depreciation expenses of 8,000, rent charges of $5,000, salaries and wages of $ 8,000, amortization expense of $2000, utilities expense of $3,500 and other operating expenses of $ 12,000. During the year, interest paid on loan taken was $ 25,000 and the taxes paid were $ 10,000. Analyse the overall profitability of the company by preparing the Profit and Loss Statement for the year ended December 31, 2021 and calculate EBITA to manifest the operational profitability.

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