In an accounting conference, discussion turned to the possibility of preparing financial statements from few accounts together with financial ratios. The Assistant Controller provided the following data:
Item Rs.
Net Income 1,200,000
Rate of return (Income) on Sales 10%
Gross Profit rate on Net Sale 40%
Rate of Marketing expenses to Sales 15%
Total Liabilities 2,000,000
5% Bond payable represents 37.5% of the total liabilities -
Required: An Income Statement based on the above information