Entrepreneurship and Small Business Management (MNE3701)
Institution
University Of South Africa (Unisa)
Book
Small Business Management
MNE3701 Assignment 2 (DETAILED ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references ... Having acquired sufficient knowledge and skills on financial management for small
business, you must demonstrate pract...
Entrepreneurship and Small Business Management (MNE3701)
All documents for this subject (83)
Seller
Follow
VarsityC
Reviews received
Content preview
MNE3701
Assignment 2 Semester 2 2024
Unique #:
Due Date:12 September 2024
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1
Three important financial statements can be used for decision making:
• a statement of profit and loss and other comprehensive income,
• a statement of financial position and
• a statement of cash flows.
1. STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE
INCOME
Step 1: Determine the Reporting Period
Decide on the timeframe for which you're reporting. This is usually done annually,
semi-annually, quarterly, or monthly. For this example, let's assume we're preparing
an annual statement for the fiscal year ending December 31, 2023.
Step 2: Calculate Revenue
Sum up all the income your business has generated from its operations. This
includes sales of goods or services, online sales, and other income streams.
If MNE3701 Pvt Ltd sold 10,000 units of its product at R50 each, the total sales
revenue would be R500,000. Additionally, if the company made R20,000 from
consulting services, the total operational revenue would be R520,000.
Step 3: Calculate Cost of Goods Sold (COGS)
This includes all the direct costs related to the production of goods or services sold
by your business.
If the cost to produce one unit of product is R30, and you sold 10,000 units, the
COGS would be R300,000.
Include any interest expenses from loans and calculate the tax obligations.
If financing costs were R10,000 and corporate taxes (assuming a 25% tax rate on
the operating profit) amounted to R25,000, the total deductions would be R35,000.
Step 8: Calculate Net Income
Subtract financing costs and taxes from the operating profit to get your net income.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller VarsityC. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.88. You're not tied to anything after your purchase.
