Financing limited companies

The financial statements of a limited company are to be prepared based on the following
information . Calculate profit after tax and prepare the income statement.​
Given: Revenue 840, cost of sales (520), wages and salaries (98), heat and light (18), rent and
rates (24), motor vehicle expenses (20), Insurance (4), printing and stationery (12), depreciation
(45), audit fee (4), interest payable (10), profit before taxation 85, taxation (24).




Income Statement (Statement of Profit or Loss)
Revenue ............................................. 840​
Less: Cost of sales ......................... (520)​
Gross profit ....................................... 320

Operating expenses:

●​ Wages and salaries ............... 98
●​ Heat and light .......................... 18
●​ Rent and rates ........................ 24
●​ Motor vehicle expenses ........ 20
●​ Insurance .................................. 4
●​ Printing and stationery .......... 12
●​ Depreciation ............................. 45
●​ Audit fee ..................................... 4

Total operating expenses ........ (225)

Operating profit .......................... 95

Less: Interest payable ............... (10)

Profit before taxation ............... 85

Less: Taxation ............................ (24)




Profit after tax = 61