QUESTION 8:Calculate the cost of sales in the statement of profit or loss and other comprehensive income for the financial year end 31 August 2023 of Sanit Ltd.1.R9 180 0002.R9 000 0003.R9 450 0004.R9 705 000

Identify the different names given to the income statement.Define each of the following terms and, where relevant, write down the mathematical equation that would help in calculating the figure.SalesCost of goods soldGross profitNet profitCalculate the cost of goods sold (COGS), given the following information:  $Sales 700 000Stock (opening) 100 000Purchases of stock 400 000Closing stock 50 000Using the figures from question 3, calculate gross profit.Using your workings from questions 3 and 4, calculate the value of net profit (or loss) if expenses for the period totalled $80 000.Anita Toparis owns and operates Petal’s Florist. Last year Anita had a sales revenue of $285 000. Her cost of goods sold totalled $115 000. Her operating expenses were: electricity $5000, advertising $11 000, interest charges $5000, salaries $62 000 and rent $25 000. Construct an income statement (statement of financial performance) for Anita and tell her whether she has made a net profit.Distinguish between selling, administrative and financial expenses, giving examples for each.Explain how an income statement can provide useful information to a business and its stakeholders.

Using the financial statements below, calculate the current ratio for the current year. Please calculate to 2 decimal places.Profit and loss statement Current year Prior yearRevenue 14,800 18,500Less Cost of sales 6,000 7,500Gross profit 8,800 11,000Less expenses Wages Expense 5,500 6,500Interest Expense 2,200 2,000Depreciation Expense 1,000 1,200Advertising Expense 900 800Net profit (800) 500BALANCE SHEET Current year Prior yearCurrent assets Cash 14,250 16,700Accounts Receivable 14,000 3,500Inventory 6,000 2,500Prepaid Expenses 650 1,500Non-current assetsProperty Plant Equipment 192,500 193,500Land 210,000 210,000Total assets 437,400 427,700Current liabilitiesAccounts Payable 11,700 4,200Unearned Revenue 3,500 2,000Wages Payable 3,500 2,500Non-current liabilitiesBank Loan 118,000 122,500Total liabilities 136,700 131,200NET ASSETS 300,700 296,500Equity Share Capital 255,000 250,000Retained Earnings 45,700 46,500TOTAL EQUITY 300,700 296,500

3. Calculate: 1) Gross Profit Ratio; 2) Operating Ratio; 3) Net operating Profit Ratio and 4) NetProfit Ratio and comment on profitability positionPARTICULARS RsNET SALES 1200000LESS COST OF GOODS SOLD 700000GROSS PROFIT 500000LESS OPERATING EXPENSES 200000OPERATING PROFIT 300000ADD NON OPERATING INCOME 45000345000LESS NON OPERATING EXPENSE 25000PROFIT BEFORE TAX 320000TAX RATE 40%

Required informationSkip to question[The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $ 170,000Income Tax Expense 19,230Merchandise Sales (gross revenue) for Cash 250,000Merchandise Sales (gross revenue) on Credit 44,000Office Expense 19,500Sales Returns and Allowances 7,350Salaries and Wages Expense 42,2002-a. What was the dollar amount of gross profit?2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.)

If a firm has a closing inventory of Rs. 25,000, direct expenses incurred during the year are Rs. 48,000, and the sales are Rs. 1,35,000. What is the amount of gross profit earned during the year? Rs. 62,000 Rs. 1,12,000 Rs. 1,58,000 Rs. 76,000