Calculate Gross profit ratio PAGE 61 js 1PACKAGING COMPANY LIMITED SAOGSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2020.Note20202019RO.RO.REVENUE148,886,7099,743,043Cost of sales(8,414,758)1,328,28515(7,644,631)1,242,078GROSS PROFITOther operating income16351,700122,808(10,416)(36,779)(611,333)(412,357)522,893(141,730)381,163(57,399)Depreciation(15,078)17(15,000)Allowance for expected credit lossesGeneral and administration expenses(609,444)(425,189)386,38218Selling and distribution expenses19PROFIT FROM OPERATING ACTIVITIESFinance costs21(190,028)NET PROFIT FOR THE YEAR BEFORE TAX196,354Income tax expense for current year22 b)(29,625)NET PROFIT FOR THE YEAR AFTER TAX323,764166,729Other comprehensive income:Items that will not be reclassified subsequentlyto profit or loss: (net of tax)Loss on revaluation of freehold land(200,000)Deferred tax release on revaluation decrease22 d)12,637Other comprehensive income/(loss) for the year(187,363)TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR323,764(20,634)Basic earnings per share230.1080.056The accompanying notes form an integral part of these financial statements.The report of the independent auditor is set forth on pages 1 to 4.For PACKAGING COMPANY LIMITED SAOGCHAIRMANDIRECTOR PAGE 5PACKAGING COMPANY LIMITED SAOGSTATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2020.Note20202019RO.RO.ASSETSNON-CURRENT ASSETProperty, plant and equipment34,989,0725,434,159CURRENT ASSETSInventories4.2,064,4242,547,002Trade and other receivables3,098,6063,049,804Other assets6139,19010,823Cash and cash equivalent730,869284,4805,333,0895,892,109TOTAL ASSETS10,322,16111,326,268EQUITY AND LIABILITIESMEMBERS' FUNDSShare capital8.3,000,0003,000,00090,811Share premiumLegal reserveGeneral reserve90,811514.292481,91653,37853,378Revaluation reserve649,245649,245Accumulated profits365,15773,769Equity funds4,672,8834,349,119NON-CURRENT LIABILITIES9.Long term bank borrowingDeferred tax liabilityStaff end of service gratuity92,97422 d)260,688251,76393,431438,16820 c)115,065375,753CURRENT LIABILITIESShort term bank borrowings102,682,5474,072,072Trade and other payablesContract liabilityLoan from a related party2,354,36314,141112,291,921126,28813100,00093,700Amount due to a related party1374,00075,000Current tax payable22 b)48,4745,273,5256,538,981TOTAL EQUITY AND LIABILITIES10,322,16111,326,268The accompanying notes form an integral part of these financial statements.The report of the independent auditor is set forth on pages 1 to 4.These financial statements have been approved and authorised for issue by the Board of Directors on19th January 2021.For PACKAGING COMPANY LIMITED SAOGCHAIRMANDIRECTOR

Question

Accepted Answer

Gross Profit is the difference between Sales Revenue and Cost of Goods Sold. 
Gross Profit = Sales…