Masks-R-Us Ltd. financial data is provided for the period ending August 31st including sales, opening/closing stock, purchases, and expenses. Students are asked to: 1) Construct an income statement considering corporate taxes of 25%, interest of 8% of net profit, and $3,000 dividend per shareholder of which there are 11. 2) Interpret the income statement and comment on if financial performance can be judged solely on this information. 3) The worksheet is for a Business & Management class and aims to teach students how to prepare an income statement.

1. UNIDAD EDUCATIVA BILINGUE NUEVO MUNDO
WORKSHEET
FOR ING 01 VER 15 04 11
Teacher: Alex Arancibia / Verónica Icaza Name: ……………………………
Course: 2nd Bach Section:…………………………
Subject: Business & Management HL Date: __ December, 2012
Activity: Preparing an Income Statement
Masks-R-Us Ltd.
An extract of this year's financial data for Masks-R-Us Ltds. for the period ended 31st August is shown
below:
• Sales turnover 15,000 masks @ $8 each
• Opening stock $9,000
• Stock Purchases $40,000
• Closing stock $8,000
• Overhead expenses $18,000
a. Construct an Income Statement considering the following information:
-Corporate taxes amount to a 25%
-The interest expenses in the period were 8% of the net profit
-The business became a private limited company a year ago and the board of diectors has
agreed on a $3,000 dividend per shareholder. The business is supported by eleven
shareholders.
b. Interpret the findings from your answer above and comment on whether the financial
performance of the business can be judged solely on this information
Approved by: ________________________ Date: 02aug2012 # of copies: ____ Pages: 1/__