4.1 Rose Limited presented the Statement of Comprehensive Income below for its most recent financial year. R Sales 743 000 Cost of sales 402 000 Gross profit 341 000 Operating expenses 145 000 Income from operations 196 000 Other income 1 100 Other expenses 26 000 Profit before tax 171 100 Income tax 60 000 Net profit 111 100 Answer the following questions: 4.1.1 Explain the difference between sales and other income. (4 marks) 4.1.2 Rose Limited would like to earn a large gross profit by selling its products at a much higher price than its cost. Describe two factors that may prevent it from doing so. (2 marks) 4.1.3 Explain how cost of sales, operating expenses and other expenses are different from one another. (3 marks) 4.1.4 Explain why cost of sales, operating expenses, other expenses and income tax are listed separately in the Statement of Comprehensive Income rather than being lumped together as one item? (3 marks) 4.1.5 Explain why the Statement of Comprehensive Income presented above is inadequate to provide a proper interpretation of the financial result of Rose Limited for the financial year.

4.1Rose Limited presanted the Statement of Comprehensive Incoma below for its most recent financial year. Answer the following questions: 4.1.1 Explain the difference between "sales" and "other income". (4 marks) 4.1.2 Rose Limited would like to eam a large gross profit by seling its products at a much higher price than its cost. Describe two factors that may prevent it from doing so. (2 marks) 4.1.3 Explain how cost of sales, operating expenses and other expenses are different from one another. (3 marks) 4.1.4 Explain why cost of sales, operating expenses, other expenses and income tax are listed separately in the Statement of Comprehansive Income rather than being lumped togather as one item? (3 marks) 4.1.5 Explain why the Statement of Comprehensive Income presented above is inadequate to provide a proper interpretation of the financial result of Rose Limited for the financial year