Exam (elaborations)
MANCOSA FIN REP & ANALYSIS UNIT 4 SOLUTIONS
- Institution
- Management College Of Southern Africa (MANCOSA)
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Page 1 of 3FINANCIAL REPORTING AND ANALYSIS
UNIT 4 (FINANCIAL STATEMENTS OF A COMPANY): SOLUTIONS
WOODFORD LTD
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023
Workings R
Sales R7 570 000 – R50 000 returns 7 520 000
Cost of sales (4 060 000)
Opening inventory 1 100 000
Purchases R4 110 000 – R330 000 returns 3 780 000
Carriage on purchases 80 000
Closing inventory (900 000)
Gross profit 3 460 000
Other operating income 0
Gross operating income 3 460 000
Operating expenses (2 113 000)
Maintenance R70 000 70 000
Rates R50 000 – R2 000 48 000
Carriage on sales R100 000 100 000
Wages and salaries R800 000 800 000
Stationery R10 000 – R2 000 8 000
Bad debts R20 000 + R6 000 (R10 000 X 60%) 26 000
Sundry expenses R70 000 70 000
Insurance R30 000 – R1 000 29 000
Telephone R70 000 70 000
Water and electricity R80 000 80 000
Directors’ fees R480 000 480 000
Auditor’s fees R50 000 + R20 000 70 000
Provision for bad debts adjustment R22 000 – R20 000 2 000
Depreciation on vehicles (R1 300 000 – R500 000) X 20% 160 000
Depreciation on equipment R1 000 000 X 10% 100 000
Operating profit 1 347 000
Interest income 0
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