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4.1Rose Limited presented the Statement of Comprehensive Income below for its most recent financial year. Answer the following questions: 4.1.1 Explain the difference between sales
4.1Rose Limited presented the Statement of Comprehensive Income 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 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. (2 marks)
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