Exam (elaborations)
Financial Reporting and Analysis Memo ()
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- Financial Reporting And Analysis
MANCOSA Financial Reporting and Analysis Memo for the 17th of November 2021
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FINANCIAL REPORTING AND ANALYSISNOVEMBER 2021
MEMORANDUM
PREPARED BY: MTHOMBENI
0767297208
, QUESTION 1
Statement of Comprehensive income for Royal Traders for the year ended 28
February 2021
ROYAL TRADERS
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2021
Workings (If any) R
Sales (1000000-8000) 992000
Cost of sales (480000)
Gross profit 512000
Other operating income 17000
Bad debts recovered 2000
Commission income 10000
Provision for bad debt adjustment(8000-3000) 5000
Gross operating income 529000
Operating expenses (369430)
Trading stock deficit (140000-136000) 4000
Stationery (4000-600) 3400
Motor expenses (34000-6000) 28000
Discount allowed 70
Telephone (14000+1400) 15400
Rent expense (42880-3520) 39360
Electricity and water 24000
Bank charges (6000+600) 6600
Insurance (12000-1200) 10800
Depreciation (22000+1000+34800) 57800
Bad debts 2000
Salaries and wages 178000
Operating profit 159570
Interest income 120
Interest expense(26400+2400) (28800)
Net profit for the year 130890
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