Question

It's been a year since Brian, a self-employed professional accountant, started his business on December 31, 2019. During the year, he provided accounting services and earned # 120 million.

He has an accountant and two clerks. He himself has a monthly salary of 81,500,000 and pays 712,600,000 and 110,800,000 a year, respectively, to the accountant and clerk. The total PIT and social security costs for Bat and his staff for the year are 89936000.

The cost of office supplies, including postage, was $ 85,400,000 that year. Brian spent $ 77,600,000, which is deductible from taxable income, for travel and receptions related to hospitality and the development of a new business. T pays 1,200,000 MNT per month for office rent. Depreciation of furniture for that year was 1,000,000. Bat paid $ 500,000 in interest on the $ 125,000,000 he borrowed to start his business. The tax rate is 10%.

a. Brian will end on December 31, 2019? Prepare income statement.

b. Evaluate his 2019 financial performance.

Answer 1