Question

Think about a local UAE based company (Not a multinational!).

Estimate their revenues and expenses for two years. (Multiple Step Income Statement)

Try to be as realistic as possible.

Explain briefly (1 page max) where the money came from and what were the expenses.

Answer 1

A multistep income statement segregates total operating revenue from non operating revenue and total operating expenses from non operating expenses.

Income statement

		Rupess in crore
Particulars	2019	2018
Sales	640	580
Cost of goods solf	140	120
Gross profit	500	460
Less operating expenses
Advertisement	10	8
Sales commision	24	18
Rent expenses	95	80
Supplies expenses	30	15
Income from operation	341	339
Non operating Inc. And exp.
Insurance proceeds	100	90
Interest expenses	30	20
Net income	411	409