Question

updates now or Prepare a multi-step income statement for Mumakeipe Sdn. Bhd. (an engineering wiring service) for the year ending December 31, 2017 given the information below: Item Interest expense Cost of goods sold (COGS) Depreciation expense Management salaries Advertising expenditures Gross Sales Taxes Returns and allowances Rental payments R&D expenditures Repairs and maintenance costs RM 16850 299600 10200 17,950 12,930 590600 3,270 11310 39,270 4930 2,910 a) What is Mumakeipe's gross profit? b) What is Mumakeipe's operating profit? c) What is Mumakeipe's net profit? d) What is Mumakeipe's net profit margin? Format: 266730 Format: 795700 Format: 465460 Format:0.9

Answer 1

Income Statement

Gross Sales	590600
Less: Returns and allowances	11310
Net Sales		579290
Less: Cost of goods sold		299600
Gross Profit		279690
Less: Operating expenses
Depreciation	10200
Management salaries	17950
Advertising	12930
Rental	39270
R&D expenses	4930
Repairs and maintenance	2910
Total operating expenses		88190
OPERATING INCOME		191500
Less: Interest		16850
Profit before taxes		174650
Less: Taxes		3270
Net Profit		171380

a: Gross profit = 279690

b: Operating profit = 191500

c: Net Profit = 171380

d: Net Profit margin= Net profit/Net sales

= 171380/579290

=29.58%