MNE3701 Assignment 2 (QUALITY ANSWERS) Semester 1 2025

MNE3701
Assignment 2 Semester 1 2025

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Due Date: 8 May 2025


This document includes:

 Helpful answers and guidelines
 Detailed explanations and/ or calculations
 References




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, QUESTION 1

The three primary financial statements that need to be prepared are the
Income Statement, Balance Sheet, and Cash Flow Statement.



1. INCOME STATEMENT (PROFIT AND LOSS STATEMENT)

The Income Statement shows the business's revenues and expenses over a
specific period, resulting in a net profit or loss.

Practical Example:

Suppose I own a small bakery called Sweet Treats Bakery.

 Revenue: R150,000 (sales of cakes and pastries)
 Expenses:
o Rent: R15,000
o Salaries: R50,000
o Ingredients and supplies: R30,000
o Utilities: R5,000
o Marketing: R10,000
Income Statement Example:

Income Statement for Sweet Treats Bakery Amount (R)

Revenue 150,000

Less: Expenses

- Rent (15,000)

- Salaries (50,000)

- Ingredients and supplies (30,000)

- Utilities (5,000)

- Marketing (10,000)

Net Profit 40,000



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