Look back to Example…3.1 and assume that a trainee accountant had prepared the income statement. Subsequent checking by the chief financial officer revealed the following errors:

1. Sales performance bonuses payable to staff amounting to £12,500 had been charged to cost of sales.

2. The depreciation charge for fixtures and fittings should be £10,000 not £1,000.

3. Stationery costing £500 had been treated as interest on borrowings.

What will be the gross profit, operating profit and profit for the period after these errors have been corrected?

Data from Example…3.1

Better-Price Stores

Income statement for the year ended 30 June 2021