QUESTION 3:

Izzmir Corporation
Statement of Income
For The Year Ended December 31, 2009

Revenue: (RM)

 Net sales 120,800

 Total revenue 120,800

Expense:

 Cost of goods sold 5,750

 General and Administration expense 850

 Operation expense 1,350

 Depreciation expense 500

 Interest expense 900

 Total expenses 9,350

Income before taxes 3,450

taxes 1,440

 Net income 2,010

 Izzmir Corporation
Balance Sheet Statement
As at December 31, 2009

(RM) (RM) (RM)

Accumulated
Cost
depreciation
Fixed assets:

 Building and equipment 122,000 (34,000) 88,000

 88,000

Current assets:

 Cash 16,550

 Accounts receivable 9,600

 Inventory 6,500

 32,650

Less: Current liabilities:

 Account payable 4,800

 Notes payable 600 (5,400)

 Working capital 27,250

 115,250

Financial by:

 Common stock 45,000

 Long-term debt 55,000

 Retained earnings 15,250

115,250