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Tuesday, March 23, 2021

Income Statement and Profitability Ratios workshet for IB, IGCSE, A Level Business students


 Finance and Accounts – Income Statement and Profitability Ratios

Incoment statement worksheet

Neskle Plc ( NP)

The following financial information is taken from the books of Neskle Plc for the year ended 31 March 2020.

Sales revenue $ 45,000


Cost of goods sold $ 12,000

Promotion $ 500


Salaries $ 2,500

Repairs and maintenance $ 500


Interest $ 400

Tax $ 800


Dividends $ 2,000.

 Table 1



a)      Define the following terms:

·       Gross profit

·       Net profit



[4 marks]

b)      Using the  figures given in the  table 1, complete the  Income Statement for the year ending 31 March 2020 for Neskle  Plc.



[5 marks]





Sales revenue



Less: Cost of Goods Sold



Gross Profit



Less: Expenses






Repairs and maintenance






Profit before interest & tax ( PBIT)



Less: Interest



Profit After Interest before tax



Less: Tax



Profit After Interest & Tax ( PAIT)






Retained Profit




c)        Using your answers ( question (b), calculate  gross profit margin and net profit margin

·       Gross profit

·       Net profit




[4 marks]





Gross Profit margin






Net Profit Margin






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