With the following information develop the Annual Income Statement for Safe and Secure Insurance Company...
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Accounting
With the following information develop the Annual Income Statement for Safe and Secure Insurance Company for year ended December 31, 2021. (3 points) Clearly write out all parts of the Income Statement. Hint - not all the information provided may be needed
Loss Reserves $15,000,000
Loss Adjustment expenses $2,500,000
Premiums Written $60,000,000
Commissions Payable 2,000,000
Net Losses Incurred $43,500,000
Investment income $5,000,000
Premiums Receivable $2,000,000
Underwriting expenses $15,500,000
Total Bonds Held $10,000,000
Federal Income Tax $600,000
Cash $200,000,000
Premium Earned $59,000,000
Safe and Secure Insurance Company
Income Statement year ended Dec. 31, 2021
Revenues:
Expenses:
Net Income:
2. Based on the information in Question 1. above calculate the Loss Ratio and the Combined Ratio (2 points). Comment on the profitability of the company. (1 point)
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