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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 eam 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? 4.1.5 Explain why the Statement of Cmprehensive Income presented above is inadequate to provide a proper interpretation of the financial result of Rose Limited for the financial year. (2 marks) 4.2 The Statement of Comprehensive Income for 2022 and 2021 given below were extracted from the accounting records of Pinky limited: Pinky Limited Statement of Comprehensive Income for the year ended 31 December Required: Refer to the Statement of Comprehensive Income of Pinky Limited for 2022 and 2021 and comment on the performance of the company including the operating profit earned. Take into account that the profit margin (percentage Profit after tax to sales) for the industry was 4.51% for 2018 and 2.60% for 2022. (8 marks) 4.3 Name THREE (3) transaction that improves cash flow but does not increase profit
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