Financial reporting and analysis exam answers

Question 3
Statement of comprehensive income for the year ended 29 February 2024
sales 1 113 000 - 20 000 1 093 000
Cost of sales (330 000)
Gross profit 763 000
Other operating incomes 2 000
Decrease in provision for bad debts 2 000
Gross operating income 765 000
Operating expenses (600 900)
Salaries and wages 144 000
Rent expense 66 000 - 6 000 60 000
Motor expenses 40 000 + 5 000 45 000
Directors fees 90 000
Audit fees 28 000
Telephone 18 000
Electricity and water 24 000 + 2 000 26 000
Bank charges 4 000 + 500 4 500
insurance 9 000 - 600 8 400
stationery 9 000 - 1 000 8 000
Depreciation equipment 10% x 440 000 44 000
Depreciation on vehicles 20% x 600 000 120 000
Trading stock deficit 38 000 - 36 000 2 000
Bad debts written off 60/40 x 2 000 3 000
Operating profit 164 100
Interest expense 12% x 100 000 (12 000)
Operating profit before tax 152 100
Tax 60 000 - 17 583 (42 417)
Net profit after tax 109 683