based on that solution just want to ask how find gross profit and net profit？半夜12:30O all ll10Pront or Loss and Comprenensive income is astatement prepared in a format of ledgeraccount shows gross profit and net profitamounts.The first part calculated the grossprofit/loss resulting from purchases andsale(core activity) of business while the secondpart calculates the net profit/loss resulting fromoperating activities such as administrativeexpenses and general expenses,interestincomes,maintenance and repairs,selling anddistributions ,provisions etc.Solution for requirement (a).Statement of Profit and Loss and Comprehensive IncomeFor year ended 31 August 2019ParticularsOpening InventoryPurchases(-) Purchase Returns(-)Goods WithdrawnWages & SalariesGross Profit c/dTotalAmount (RM) Amount (RM) ParticularsAmount (RM) Amount (RM)2,400 Sales(-) Sales ReturnsClosing Inventory30,65040,40031.00030040,1002503,3001005,6004,75043,400 Total120 Gross Profit b/d700 Discount Received950 Provision for doubtful debt43,400DiscountInsuranceUtilities4, 750200RatesBad DebtsNet Profit c/fTotal350Old300200New2122,8425,162 Total5,162We can conclude that the business has grossprofit of 4,750 RM and Net Profit of 2,842 RM.Step2b)Statement of Financial PositionBalance Sheet is a statement of financial OkyOTcw/a/MjUwNDEyNDM20TEx/detailsParticularsCredit (RM)48,400Debit (RM)CapitalDrawingsTrade receivablesTrade payablesSalesPurchasesSales returnsPurchases retumsWages and salariesDiscounts allowedDiscounts receivedProvision for doubtful debtsInsuranceInventory as at 1 September 2018Utilities3,5009,00012,50040,40031,0003002505,6001202003007002,40095035010,0003,00020,000RatesPremisesFixtures and fittingsMotor vanCash in handCash at bankTOTAL33014,800102.050102.050Additional information as at 31 August 2019:i. Inventory as at 31 August 2019 amounted RM3,300ii. An entity from whom there is accounts receivables of RM200 was unable tosettle his debt and this amount is to be written off as bad debts.iii. The provision for doubtful debts is 1% of the outstanding trade receivables.iv. The owner took RM100 worth of goods from the business for his own useRequired:a) Statement of Profit or Loss and Others Comprehensive Income for the yearEnded 31 August 2019.b) Statement of Financial Position as at 31 August 2019.РОСОSHOT ON POCO F2 PRO

Gross profit is calculated on basis of sales and cost of good sold and other direct expenses. Net…

Debit (RM) Credit (RM) 48,400 Particulars Capital Drawings Trade receivables Trade payables Sales Purchases Sales returns Purchases retums Wages and salaries Discounts allowed 3,500 9,000 12,500 40,400 31,000 300 250 5,600 120 Discounts received Provision for doubtful debts Insurance Inventory as at 1 September 2018 Utilities Rates Premises Fixtures and fittings Motor van Cash in hand Cash at bank TОTAL 200 300 700 2,400 950 350 10,000 3,000 20,000 330 14,800 102.050 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use Required: a) Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019. b) Statement of Financial Position as at 31 August 2019.

Debit (RM) Credit (RM) 48,400 Particulars Capital Drawings Trade receivables Trade payables Sales Purchases Sales returns Purchases retums Wages and salaries Discounts allowed 3,500 9,000 12,500 40,400 31,000 300 250 5,600 120 Discounts received Provision for doubtful debts Insurance Inventory as at 1 September 2018 Utilities Rates Premises Fixtures and fittings Motor van Cash in hand Cash at bank TОTAL 200 300 700 2,400 950 350 10,000 3,000 20,000 330 14,800 102.050 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use Required: a) Statement of Profit or Loss and Others Comprehensive Income for the year Ended 31 August 2019. b) Statement of Financial Position as at 31 August 2019.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.26EX: Comprehensive Income Anson Industries, Inc. reported the following information on its 20Y1 income...

See similar textbooks

Similar questions

Comprehensive Income Anson Industries, Inc. reported the following information on its 20Y1 income statement: Sales 4,000,000 Cost of good s sold 2,300,000 Operating expenses 1,000,000 Income tax expense 280,000 Other comprehensive income 450,000 Prepare the following for Anson Industries, Inc.: A. Income statement, including comprehensive income. B. Income statement and a separate statement of comprehensive income.
QUESTION 22 Which of the following is an incorrect statement? Revenue - Operating Income = Gross Margin Revenue = Price * Qty sold or TR = P*Q EAT = EBT - Taxes Income - Expenses = Operating Income Revenue - CGS = Gross Profit
item/company A B Revenue 38.51% 14.23% net income 32.60% 1,596.39% net profit margin -4.26% 1,410.59% ROE 19% 8.6% Based on the information which company has the higher financial performance? state the reason
true or false 10. The financial manager prepares financial statements that recognize revenue at the point of sale and expenses when incurred.
QUESTION 12 On the income statement, the result of selling equipment is reported as a(n) operating revenue or expense. other revenue or expense. disposal of a business segment. cumulative effect of a change in accounting principle.
7) Net operating profit after tax (NOPAT) includes operating revenues less expenses such as: A) Cost of goods sold (COGS) B) C) D) E) F) Taxes on operating income Selling, general and administrative expenses (SG&A) After-tax earnings from investments and interest expenses All of the above A, B and C only
Subject 2 Part 1 Sanborn Corporation’s condensed comparative income statement and balance sheet for 20X8 and 20X7 appears below. Sanborn Corporation Comparative Income Statements in € For the Years Ended December 31, 20X8 and 20X7 20X8 20X7 Net Sales 3,276,800 3,146,400 Cost of goods (2,088,800) (2,008,400) Gross margin 1,188,000 1,138,000 Operating expenses Selling expenses (476,800) (518,000) General & administrative expenses (447,200) (423,200) Total operating expenses (924,000) (941,200) Income from operations 264,000 196,800 Interest expense (65,600) (39,200) Net income before taxes 198,400 157,600 Income taxes (62,400) (56,800) Net income after taxes 136,000 100,800 Earnings per share 3.40 2.52 Sanborn Corporation Comparative Balance Sheets in € December 31, 20X8 and 20X7 Assets 20X8 20X7 Liabilities &…
19 - When vertical analysis is applied to the income statement of a business with net sales of TL 1,000,000 and non-operating expenses of TL 13,000, which of the following is the vertical analysis value of non-operating expenses (%)? a) 4.5 B) 2,5 NS) 5.5 D) 1.3 TO) 3.3
Question C5 Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 Operating profit 98 Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2020 and 2019 2020 2019 OMR in million OMR in million Non – current assets Property, plant and equipment Land and buildings 155 155 Plant and machinery 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities…
Requirement: a. What is the effect of the errors on Biden's December 31, 20x2 retained earnings? net effects of the errors on Biden's 20x1 and 20x2 profit or loss, repesctively = overstated by P24,000
5 - When vertical analysis is applied to the income statement of a business with a net sales of TL 1,000,000 and a cost of goods sold of TL 850,000, the vertical analysis value of the cost of goods sold (%) is which of the following? a) 85 B) 75 NS) 45 D) 65 TO) 25