SOLVED NUMERICAL PROBLEMS
- Prepare income statement and find out the changes in EBIT and net income in 2007–08 over 2006–07 on the basis of the following details:
Sales during 2006–07 amounted to Rs 4,00,000 that increased by 20% in the following year. The cost of goods accounted for 60% of the sale value during 2006–07 which, on account of economy measures, slumped to 55% in the following year. Operating expenses too fell from 10% to 8% of the sale value. But the amount of interest payment rose from Rs 25,000 to Rs 30,000 in 2007–08. Tax rate was constant at 30%.
Revenue from sales4,00,0004,80,000
Less cost of goods2,40,0002,64,000
Margin of contribution1,60,000 ...