MNE3701
Assignment 2 Semester 1 2025
Detailed Solutions, References & Explanations
Unique number:
Due Date: 8th May 2025 @23h00
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:
Terms of use
o Rent: R15,000 By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
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)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 2 Semester 1 2025
Detailed Solutions, References & Explanations
Unique number:
Due Date: 8th May 2025 @23h00
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:
Terms of use
o Rent: R15,000 By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
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)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
